The Great Wealth Transfer: Why Conversations About Money Matter

We’re in the midst of a significant financial shift - the largest intergenerational wealth transfer in history. Over the next 20 to 30 years, an estimated NZ$140 trillion (around US$83 trillion) will pass from one generation to the next, reshaping the global financial landscape​¹. But while this wealth transfer offers incredible opportunities for families, it also comes with complex responsibilities. For those who’ve spent their lives building this wealth, ensuring its successful transition to the next generation requires more than just a will - it demands open conversations, thoughtful planning, and collaboration with trusted professionals.

So, how do you prepare for this massive shift? Here are a few key areas to consider.

1. Start the Conversation Early

Money is often a tricky subject to navigate within families, but having early, honest conversations about wealth transfer is critical. The values and vision you’ve worked hard to establish around money should guide the next generation. Discussing how the wealth was built, the sacrifices made, and the goals you have for its future can create a shared sense of responsibility.

Key questions to ask:

• What does money mean to your family?
• How do you want your wealth to support your family’s future?
• Are your children prepared to manage this responsibility?

These conversations don’t just set expectations - they help avoid misunderstandings and conflicts that can arise when large sums of money are involved.

2. Understand the Work Behind the Wealth

One of the most important aspects of wealth transfer is ensuring the next generation understands the hard work and smart decisions that went into building it. For many families, wealth isn’t just a number in the bank - it’s the result of years, if not decades, of careful planning, saving, and investing. Sharing the story behind the wealth can foster appreciation and a commitment to preserving it.

3. Establish Clear Expectations

Every family has unique dynamics, and these can have a significant impact on how wealth is transferred. Establishing clear expectations around who will manage the wealth, how it will be governed, and what its purpose will be is essential to avoiding future disputes. Some families prefer to leave an inheritance, while others may choose to give financial gifts during their lifetime. Either way, clarity around these decisions is key.

Questions to consider:

• Will your wealth be evenly distributed among heirs, or is a different arrangement more appropriate?
• Would you prefer to leave a legacy while living or create an estate after you’ve passed?
• Are there family members you’d like involved in managing the wealth?

4. Work with the Right Experts

Successful wealth transfer involves more than just conversations - it requires sound legal and financial strategies. By working with a team of professionals - lawyers, financial advisers, and estate planners - you can ensure that your wealth is protected, distributed as you wish, and shielded from unnecessary taxes or risks. Tools like wills, trusts, and powers of attorney can all play a role in securing your wealth for the future.

At Lifetime, we have the expertise to guide you through this process. Our team can help you set up structures that safeguard your wealth while making sure your wishes are respected.

5. Protecting the Plan

Wealth transfer doesn’t end with drawing up a plan - it needs to be safeguarded over time. As circumstances change, so should your financial plan. Regular reviews of your estate, investments, and legal documents are essential to ensure they remain aligned with your goals. Additionally, discussing these plans with your family can help minimise future stress. Whether it’s updating a will or making sure your family is financially informed, these steps protect the wealth you’ve worked hard to build.

6. Addressing Family Dynamics

Wealth and family dynamics are often intertwined. Emotions can run high when discussing money, particularly when it comes to inheritance. It’s important to be sensitive to these dynamics and ensure everyone involved feels heard and respected. At Lifetime, we often advise our clients to meet with their family members to clarify expectations and roles, ensuring a smooth transfer process.

The intergenerational wealth transfer is an opportunity to create lasting financial security for your family, but it’s not without its challenges. By initiating conversations early, setting clear expectations, and working with trusted advisers, you can ensure that your wealth is preserved and passed on according to your wishes. At Lifetime, we’re here to support you and your family every step of the way - helping you build a legacy that lasts.

Ready to take action? Contact us today for a consultation and start building a plan that will protect your wealth for generations to come.

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.

Sources:
^1. UBS Sees $83T Wealth Transfer Over Next Three Decades | Wealth Management