Essentially Wealth Q2 Spring 2026

Preparing Your Family for the Great Wealth Transfer

A Historic Shift in Family Wealth

Over the next two decades, the world is expected to experience one of the largest transfers of wealth in history.

Research suggests that more than $83 trillion globally could pass from older generations to their children and grandchildren by 2048. In the UK alone, it is estimated that approximately £7 trillion will be transferred between generations by 2050.

Strong investment growth in recent years has increased the value of assets held by many families, meaning the scale of this wealth transfer could be even greater than previously anticipated.

As wealth passes from Baby Boomers to Generation X, Millennials and Generation Z, many families will need to consider how best to transfer assets while protecting their long-term legacy.

Why Planning Matters

Passing wealth to future generations is rarely as simple as leaving an inheritance.

Research indicates that:

• Around 70% of family wealth is lost by the second generation
• Up to 90% is lost by the third generation

Without careful planning, wealth can quickly diminish through poor financial decisions, tax inefficiencies and a lack of financial education.

A well-structured estate planning strategy can help ensure that your wealth benefits future generations in the way you intend while preserving the values and legacy you’ve worked hard to create.

More Than Simply Passing on Money

Successful wealth transfer is about much more than financial assets.

It often involves preparing future generations to manage wealth responsibly and helping them understand the purpose behind the inheritance they may one day receive.

Open and honest family conversations can play an important role in this process.

Discussing your intentions, values and long-term objectives can help:

• Reduce misunderstandings
• Avoid potential family disputes
• Improve financial awareness
• Ensure everyone understands the broader plan

Taking a proactive approach today can create greater confidence and clarity for the future.

A Timely Opportunity to Review Your Plans

Proposed changes to the Inheritance Tax (IHT) treatment of pensions from April 2027 may accelerate the pace of wealth transfer planning for many families.

As a result, now may be an appropriate time to review your existing arrangements and consider whether your current plans remain suitable for your circumstances and objectives.

Early planning often provides greater flexibility and may create opportunities to improve tax efficiency while maintaining control over how your assets are distributed.

Breaking the Process Down

Creating a successful wealth transfer strategy becomes much more manageable when approached step by step.

We can support you with:

Identifying Your Beneficiaries

Clarifying who you would like to benefit from your estate and ensuring your wishes are clearly documented.

Choosing Appropriate Wealth Transfer Structures

Exploring suitable options such as:

• Lifetime gifting
• Trust arrangements
• Estate planning strategies
• Pension and investment planning

Developing a Tax-Efficient Strategy

Helping to minimise potential Inheritance Tax (IHT) and other liabilities where appropriate, allowing more of your wealth to reach future generations.

Facilitating Family Conversations

Supporting discussions that help family members understand your intentions and the reasons behind your planning decisions.

Preparing Future Beneficiaries

Helping the next generation develop the knowledge and confidence needed to manage inherited wealth responsibly.

Regular Reviews

Ensuring your plans remain aligned with changing legislation, financial circumstances and family needs.

Protecting Your Legacy

The great wealth transfer presents a significant opportunity for families to build long-term financial security across generations.

With thoughtful planning and professional advice, you can help ensure that your wealth continues to support the people and causes that matter most to you while preserving the legacy you have worked hard to create.

If you would like to discuss estate planning, Inheritance Tax mitigation or strategies for passing on wealth efficiently, we are here to help.

Source: Capgemini World Wealth Report, 2025.