Poised for the Great Wealth Transfer?

If you’re expecting an inheritance, now is the time to get ready, practically and emotionally, for the responsibilities that come with sudden wealth.

Baby Boomers (born 1946–1964) currently hold more than half of the UK’s wealth and are now turning their attention to passing on what they’ve built. It’s forecast that trillions in assets, made up of homes, pensions and investments, will be transferred to younger generations via inheritance, gifts and trusts. Whether you’re a beneficiary or preparing to pass wealth on, acting now can shape how that wealth grows and endures.

Preparing yourself emotionally is important, as sudden wealth often comes with emotional challenges such as family expectations, managing unfamiliar assets and adjusting lifestyle choices. A step-by-step approach, starting with honest conversations, helps build confidence and can stop you feeling overwhelmed.

Understanding how inheritance rules work is also key. Many people find Inheritance Tax (IHT) confusing – 71% of UK adults admit they don’t really grasp how IHT works, while over 40% don’t even have a Will in place².  With potential taxation and estate planning pitfalls, expert support is essential to protect family wealth and avoid losses to government coffers.

Breaking down the taboo of discussing death or inheritance is vital. According to research³, 40% of people see inheritance planning as ‘the last great family taboo.’ Moreover, 34% rarely or never talk about family finances with relatives. 

Opening up a conversation with your parents or heirs early on can help. It’s more than sharing numbers, it’s about values, hopes and long-term visions. It not only smooths transitions but nurtures multigenerational financial literacy and cooperation.

“How can I secure my legacy?”

Baby Boomers (born 1946–1964) tend to be financially comfortable, though may be worried about their children or grandchildren. For full peace of mind, the key is to start the conversation with family members early and:

“How can I save time?”

The first beneficiaries of the great wealth transfer are likely to be Generation X (born 1965–1980). Typically, this group is time poor, with a mortgage and possibly dependants. For Gen X, thinking about the Great Wealth Transfer might not be a priority, but seeking advice now, considering retirement, general financial planning and conversations with your parents, can save you a lot of time and stress later. A financial planner can help you:

“How can I achieve my financial goals?”

Millennials (born 1981–1996) typically have lower wealth levels than older generations but are highly motivated to improve their financial future. To build confidence and prepare a solid financial plan for the next 30 years (and beyond), it is a good idea to start early, so you’re well-equipped to deal with what’s coming your way.

All generations benefit from professional advice – 62% of adults worry about finances, yet only 6–8% consult a financial planner⁴. With financial anxiety affecting overall wellbeing, guidance isn’t a luxury – it’s a foundation.

Start by reviewing where you are today, look at your income, spending, savings, debts. This will help you create a stronger foundation to accommodate new wealth and ensure long-term financial stability.

According to recent research⁵, only 28% of investors felt adequately supported in planning for transferred wealth, despite 64% rating it as ‘very important.’  Financial planning plays a pivotal role in bridging this gap, helping individuals and families navigate complex decisions with greater confidence and strategic insight.

Wealth planning works best when it’s a family conversation. Talking things through as a family, including parents, siblings and children, can encourage openness and shared understanding. It’s not just about paperwork, these conversations can address personal values, gifting allowances and specific wishes, offering clarity that reduces the risk of conflict and ensures everyone understands mutual expectations.

Structuring your inheritance in a tax-efficient manner is another key element. Tools such as trusts, lifetime gifting, charitable donations, ISAs and pensions can all be tailored to support your specific goals. With a planner’s expert guidance, they can personalise these strategies to help reduce your tax burden and protect your wealth over time.

Perhaps you already have plans like these in place? Remember to revisit them regularly in light of life changes such as marriage, the birth of a child, or the death of a family member. Market shifts and regulatory updates, such as proposed changes to IHT rules, can also trigger the need for early action, like gifting or revising your estate strategy. Staying proactive ensures that your financial plan remains robust and relevant over time.

Overcoming barriers

Inherited wealth, when thoughtfully managed, can significantly enhance individual security. It can accelerate key financial goals such as debt repayment, funding education, or securing a comfortable retirement. It also provides a buffer against future uncertainties such as unforeseen events or long-term care; it can also help fulfil philanthropic ambitions.

Transparent inheritance planning doesn’t just help individuals, it can also bring families closer together. Open communication helps manage expectations, reduce misunderstandings help everyone feel more prepared emotionally and reduce the chances of misunderstandings or conflict after a loss.

At a broader level, wealth transfers have a powerful social impact. They influence housing markets, charitable giving and intergenerational mobility. With proper planning, inheritances can remain a productive force, supporting both personal and societal wellbeing rather than being squandered or left idle.

It’s easy to think of inheritance planning as something for the future, but the Great Wealth Transfer is already underway. Whether you’re preparing to pass on wealth or set to receive it, getting ahead of it now makes all the difference.

That means having open conversations, getting advice you trust and putting the right structures in place before the money changes hands. Do that and you’re not just protecting your wealth; you’re shaping your family’s future.

Need help getting started? Get in touch with your financial planner who can help cut through the complexity and show you the practical steps to take control – simply and clearly.

¹ Vanguard ^{2,3 &4} SPW ⁵ EY

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.