January 19, 2015

Over the next several decades, trillions of dollars will be passed on to younger family members, representing what is considered the largest transfer of wealth from one generation to another in history. 

During the next thirty years, it’s estimated that around $16 trillion will be passed on to family members, many of them children of individuals with high net worth. This raises a lot of questions, as each person’s situation may require unique planning. It’s no longer expected that all the assets will transfer directly to a child or that this is the best approach for every family, and that’s why an array of tools and strategies have emerged so that customized planning makes the most of asset transfer.

The U.S. will see the greatest amount of these wealth transfers, with approximately $6 trillion in wealth expected to pass to other generations in the next 30 years. Most of this is in liquid assets, which allows for quite a bit of flexibility in planning. But the planning process is not something that should be avoided until the last minute, however. Just because some of these transfers are 30 years away doesn’t mean that the current owners should skip planning until down the road. Prudent planning now can maximize opportunities while minimizing tax consequences. To get started on your own plan, give us a call at 732-521-9455.