Creating Something that Outlives You – How to Transfer Generational Wealth Successfully

Transferring generational wealth can be challenging – both in preparing to give and in receiving. The reality is that approximately only 30 percent of wealth transfers are successful (success meaning the family keeps control of assets and family harmony is intact).1 A significant part of transferring generational wealth successfully is being proactive and seeking the right advice.

What is generational wealth?

Generational wealth is an accumulation of wealth passed from one generation to the next during one’s lifetime or at one’s passing.1 Generational wealth has many forms that may include stocks, bonds, real estate and even a family business. The successful transfer of wealth from one generation to the next entails many considerations.

Why is planning overlooked?

Many people overlook how this wealth will pass on to their family’s next generation. There can be several reasons as to why this is not addressed.

  • Conversations about one’s passing can be uncomfortable
  • Concerns surrounding trust and the disclosure of too much information
  • Consideration of the financial literacy and education level of the recipients
  • Responsibility and independence that comes with inheritance: receiving a huge inheritance can be stressful, especially if the receiver is not aligned or equipped to manage the inheritance or the estate

The importance of family dialogue

Having family dialogue is a key element to the transfer of wealth and works towards maintaining family harmony. A lack of communication in this area can create a lot of uncertainty and even resentment amongst family members – especially if there is certain expectation from recipients and a different plan instructed by the transferee. By opening the conversation, the current generation can communicate their wishes and help facilitate and educate the next generation on decisions and plans, minimizing scrutiny and objections. Family meetings are a positive way to deliver the information, while expressing views, intentions, and family values.

Finding the best strategy

It is important to understand the process of settling your estate to so that a proper strategy can be created to achieve family goals. Sourcing the help of a professional advisor helps to ensure that your goals are achieved seamlessly and efficiently, taking into consideration taxes, timing, and specific family considerations. Developing and utilizing estate strategies will help maximize the value of the estate being transferred and may reduce uncertainty and stress for your loved ones. Some strategies are as simple as utilizing roll over provisions for named beneficiaries and wills. Other estates may require more in-depth planning and solutions such as trusts, life insurance, tax strategies, charitable donations, and/or other estate planning tools.

Implementing a plan and process for your generational wealth that aligns with your family goals, promotes family harmony through communication, and includes the best strategies will create stability for your family through the transfer of wealth. Connect Wealth is experienced and available to provide sound financial strategies that take into consideration your unique family goals and personal estate planning. Having the right advice and plan in place will help preserve the wealth you have worked to build for your family and ensure it is successfully received.


Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at