The Greatest Wealth Transfer in History Is Here, But 72% of Americans Say They're Not Ready For It

Brace yourselves: the "Great Wealth Transfer" is officially happening, according to reports. Over the next 20 years, $84 trillion will pass from Baby Boomers to younger generations. But most people aren't prepared to manage it. 

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Michael Pelzar, head of investments at Bank of America Private Bank, told Yahoo Finance, "Nearly half of wealthy families don't have the most basic elements of estate planning in place. What that means is that families are woefully underprepared for that wealth transfer that'll be taking place." Translation? America is heading into the largest wealth shift in history and many families are flying blind.

According to a recent survey by Citizens Bank, 72% of Americans aren't confident they can handle a major influx of money on their own. And it's not just a few nervous individuals – only 42% of adults expecting an inheritance feel comfortable managing new wealth. 

Even with so much on the line, family discussions about wealth transfer aren't happening. A surprising 35% of Americans admit they have no plans to discuss inheritance with their families. That's a significant gap, considering that only 27% have sat down to discuss it. And without these conversations, critical planning often gets left in the dark.

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The lack of estate planning is a huge issue if it isn't clear. Nearly half of affluent families have skipped out on even the most basic measures. The situation is even worse for younger generations: 62% of millennials don't have a will or trust in place. And yes, these are the same millennials (55%) expecting to inherit within the next five years.

Regarding probate – the legal process of handling estates after death – 65% of Americans know the term, but only a few understand it. Meanwhile, 56% of Americans have no idea about the fees involved. Spoiler: probate isn't cheap.

While 57% of Americans say they'd be more comfortable with a professional guiding family wealth discussions, younger adults have a different approach. Increasingly, Gen Z and millennials are relying on social media for financial advice instead of, say, a certified advisor. Sure, TikTok is a gold mine of info, but it's probably not the best place to manage a family's estate plan.

With so much at stake, now's the time to ensure your financial plans are solid. Whether organizing an estate, building confidence around a future inheritance or just setting up the basics like a will, a financial advisor can help simplify the process and reduce potential headaches. And remember – you don't need to be ultra-wealthy to benefit from smart planning. 

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