USA Today
By Medora Lee
September 18th, 2025
With great wealth comes great responsibility… Is the next generation prepared to handle it?
Baby boomers are set to give a staggering $124 trillion through 2048 to heirs, according to market researcher Cerulli Advisors in a 2024 report. But are the next generations prepared to accept it or will they become “shirtsleeves to shirtsleeves in three generations”?
That depends on the work that both givers and receivers do before the handoff, experts say. Without proper communication, guidance and planning, wealth and legacies can be lost to taxes, squandering, conflicts or simply forgotten. A 20-year research project on 3,200 families by wealth consultancy Williams Group shows 70% of wealthy families lose their wealth by the second generation, and 90% by the third.
“Money and wealth can hurt beneficiaries in numerous ways, but the way to have the money and wealth help them are just as vast,” said Jillyn Hess-Verdon, team leader of Frost Brown Todd’s family office practice.
What’s the most important step to smooth transfer?
Lack of communication and trust within the family is the leading cause (60%) of wealth transfer failure and 25% is due to heirs’ inadequate preparation, knowledge and skills to manage an inheritance, the Williams study said.
It’s “touchy to bring up these subjects and split money before death,” said Jennifer Baick, head of Mercer Advisors’ financial planning group.
Two-thirds of givers admit to procrastinating family wealth-transfer conversations, according to a national RBC Wealth Management survey. Only 39% have provided guidance or instructions to their heirs on what they should do with their inheritance, including how to spend and invest it or give it away to charities.
How can beneficiaries help themselves?
“Financial literacy is important for young people,” said Jennifer Quent, director of family office services at Kaufman Rossin.
High-net-worth families with complex estates often use a family office to help, she said. Heirs “may have to learn about different kinds of trusts, taxes, gift giving. There’s a lot of education involved,” Quent said.
