How to Protect Generational Wealth

Why Now Is the Time to Plan for What You’ve Built

Over the next two decades, we’ll witness the largest generational transfer of wealth in history. According to Cerulli Associates – a research, consulting, and analytics firm for the financial services industry – Baby Boomers are expected to pass down over $105 trillion in assets to their heirs—primarily Gen X and Millennials. But here’s the problem: studies show that 70% of wealth is lost by the second generation, and 90% is gone by the third. Why? A lack of planning.

Protecting generational wealth isn’t just about investing wisely or having a healthy savings account. It’s about ensuring that what you’ve worked for is preserved, protected, and passed on with purpose.

Here are three key ways to do that:

1. Don’t Rely on a Will Alone
   A will is a good start, but it won’t keep your assets out of probate—a public, often expensive, and time-consuming process. A revocable living trust is one of the most effective tools for protecting and privately transferring assets to future generations. It also provides critical incapacity planning if you become unable to manage your affairs during life.
2. Be Strategic About Beneficiaries and Tax Exposure
   With new rules like the SECURE Act limiting the ability of beneficiaries to stretch IRA distributions, many families face higher income taxes on inherited retirement accounts. Smart planning—including the use of Retirement Trusts or Charitable Remainder Trusts—can reduce tax burdens and extend the life of inherited assets.
3. Prepare Your Heirs, Not Just Their Inheritance
   Wealth often disappears not because of poor financial decisions—but because families aren’t prepared to manage it. Use your estate plan to build in education, incentives, or staged distributions. Trusts can be designed to protect assets from divorce, lawsuits, and spendthrift behavior while still supporting your loved ones.

We’re not just living through a wealth transfer—we’re living through an opportunity. The choices you make today will shape your family’s legacy for generations. Don’t leave it to chance. If you haven’t created (or updated) your estate plan, now is the time.

Families across the country want to protect what matters most, and that all starts with a conversation. Discuss with your estate planning and financial professionals, as well as with your family. Having difficult conversations now may save fighting or poor decision-making in the future. To ensure your wishes are put in writing, and hold a little more weight, consider building or updating your estate plan.