More Than Money: Turning Wealth Transfers Into Lasting Impact
“Life affords no greater responsibility, no greater privilege, than the raising of the next generation.”
Former U.S. Surgeon General C. Everett Koop captured the essence of what many people see as their ultimate goal: creating a legacy that extends beyond personal financial security.
Over the next 20 years, an estimated $84 trillion will pass from the Silent Generation and Baby Boomers to younger generations in what economists call The Great Wealth Transfer. This shift is more than dollars moving between accounts—it’s already reshaping how families think about financial planning, charitable giving, and what it really means to leave a legacy.
Why the Great Wealth Transfer Matters
Unlike previous generations who primarily relied on pensions and Social Security, today’s retirees—Baby Boomers, now aged 61 to 79—hold more than $82 trillion in wealth. That growth is due to longer life expectancies, decades of market expansion, and the shift from pensions to self-directed retirement plans like 401(k)s and IRAs.
This means more families than ever are navigating the responsibility of transferring significant wealth. And with larger portfolios, retirement accounts, real estate, or even family businesses at play, thoughtful planning isn’t optional—it’s essential.
Planning Your Wealth Transfer to Build a Lasting Legacy
Wealth transfers today represent a lifetime of discipline: decades of saving, investing, and decision-making. Because of that, estate planning has evolved far beyond simply drafting a will.
A meaningful plan should:
Account for taxes and complex assets
Align financial strategies with personal values
Prepare heirs to responsibly manage what they inherit
Much like Maslow’s hierarchy of needs, wealth planning has its own “ladder.” Once your retirement security is in place, the focus can shift to impact—whether that’s supporting loved ones, funding education, or leaving a charitable legacy.
Without this kind of holistic approach, many families run into disputes or unintended consequences—not from a lack of assets, but from unclear intentions or a lack of preparation.
Strategies to Optimize Wealth Transfers
Here are a few practical ways to make your plan more effective:
Tax-Efficient Lifetime Giving
Annual exclusions allow you to gift up to $19,000 per recipient in 2025 without reducing your estate tax exemption.
Lifetime giving lets you see the impact of your generosity and guide recipients in real time.
Charitable giving through donor-advised funds can provide tax advantages while also instilling shared values across generations.
Multigenerational Education Funding
Paying tuition directly to institutions doesn’t count against annual gift limits.
Contributions to 529 plans can support K–12, college, and even student loan repayment, all while offering tax benefits.
Education trusts may be useful for larger families to ensure fairness and long-term impact.
Asset Location Strategies
Place investments in the right types of accounts (taxable, tax-deferred, or tax-free) to maximize outcomes.
Consider strategies like tax-loss harvesting or “step-up” cost basis rules to minimize taxes.
Gifting appreciated assets to charity can combine tax savings with meaningful impact.
Advanced Estate Planning
Trusts, business succession planning, and charitable components can ensure assets are distributed according to your wishes.
Proper coordination across liquid and illiquid assets, along with retirement account designations, is key to avoiding unintended results.
The Great Wealth Transfer is a historic opportunity to shape the future for your loved ones and the causes you care about. With thoughtful, intentional planning, you can ensure your wealth serves its highest purpose: supporting the next generation while honoring your values.
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