A significant shift is taking place in how wealthy Americans approach wealth transfer, with younger generations increasingly prioritising giving during their lifetimes rather than after death.
According to a new survey from Charles Schwab, millionaire millennials and Generation X are twice as likely as baby boomers to share their wealth with beneficiaries while still alive.
The findings highlight a generational divide in legacy planning among high-net-worth individuals (HNWIs) with more than $1 million in investable assets.
Of the surveyed group, 97% of wealthy Americans intend to pass on their assets, but the timing and conditions of wealth transfer vary significantly across age groups.
Younger Americans favour sharing wealth sooner
The survey revealed that 36% of wealthy Americans want their beneficiaries to enjoy the wealth during their lifetime, while 39% prefer to preserve their money until after their death.
53% of millennial millionaires and 44% of Generation X respondents favor lifetime transfers, compared to just 21% of baby boomers.
In contrast, 45% of wealthy boomers expressed a preference for enjoying their wealth for themselves during their lifetime.
Millennials and Gen Xers are also far more likely to distribute a larger share of their wealth while alive—52% and 49% respectively—compared to just 19% for boomers.
This shift reflects a broader cultural and economic trend where younger generations emphasize shared experiences, financial support, and creating lasting memories with family while they are alive.
Reasons for lifetime wealth transfer
Among those who plan to transfer wealth during their lifetimes, the primary motivations include:
Providing financial support to beneficiaries (46%).
Sharing in the joy of wealth with loved ones (36%).
Creating meaningful family experiences and memories.
This approach combines practical financial support with emotional satisfaction, as wealthy millennials and Gen Xers aim to strengthen familial bonds and ensure wealth is utilized effectively while they are still present.
A more prescriptive approach to wealth usage
Younger wealthy Americans are not only transferring wealth earlier but also taking a more hands-on approach regarding its use.
Millennials and Gen Xers are significantly more likely than boomers to stipulate conditions on how their wealth can be used.
For example, they may prioritise spending on education, housing, or business investments rather than unrestricted use.
“Understanding the changing dynamics underway, we are continually evolving and enhancing our services, such as increasing access to tax, trust, and estate planning specialists,” said Andrew D’Anna, Managing Director of Retail Client Experience at Charles Schwab.
How wealth will be distributed
The survey found that Americans who plan to transfer wealth expect to distribute an average of $4.1 million.
Of this, 40% is expected to come in the form of real estate ($1.6 million), while investments make up 31%, cash accounts for 18%, and life insurance proceeds contribute 11%.
For ultra-high-net-worth individuals (those with more than $10 million in investable assets), the average transfer value jumps to $11.9 million.
However, one in five ultra-wealthy Americans (23%) worry they may leave “too much” to their heirs, creating concerns about financial discipline and responsibility.
Planning starts early for wealth transfer
The survey also showed that 61% of wealthy Americans began planning their wealth transfer before the age of 45.
Additionally, over half reported that they started their legacy planning process after reaching a net worth of $1 million.
This proactive approach to estate and legacy planning reflects the increasing complexity of wealth management and the growing importance of financial education across generations.
Bridging the generational wealth divide
As the younger generations reshape how wealth is passed on, discussions around family finances and legacy planning are becoming more open and transparent.
Wealth transfer is no longer viewed solely as an end-of-life event but as an opportunity to foster connections and provide meaningful support.
With shifting attitudes toward wealth, the role of financial institutions is also evolving.
Companies like Charles Schwab are expanding their offerings to meet the needs of younger high-net-worth individuals, including tax services, estate planning specialists, and digital tools to streamline wealth transfers.
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