America is preparing to pass on vast amounts of wealth from generation to generation. Cerulli Associates estimates that nearly $124 trillion will be transferred by 2048, most of which is expected to go to heirs.
This number caught people’s attention. But I think the bigger issue is what families don’t talk about before the money changes hands.
My concern is simple. We are preparing to transfer trillions of dollars to the next generation, but many families are not ready for this generation to take on the responsibilities that will come with it. If we continue to treat money, inheritance, and estate planning as troubling family topics, we may be leaving heirs with assets they don’t fully understand and decisions they’re not ready to make.
In my experience, children can learn that their family is wealthy without knowing much about the wealth itself. They might see a house, a car, or a lifestyle. They may not know where the money is, how it is invested, what businesses are involved, what debts or obligations there are, or who helps manage everything.
Understanding the complex financial situation after bereavement
This gap is important because inheritance is often one of the most difficult times in a person’s life. A son or daughter may grieve while trying to understand trusts, estates, investments, business ownership, taxes, and family expectations. For someone who has never been involved in these conversations before, that’s a lot of weight to bear.
Fidelity’s 2025 Family & Finance Study found that many parents still feel uncomfortable discussing inheritance amounts, net worth and legacy wishes with their children. To me, this indicates that the problem is not just estate planning. It’s also about whether the people who may one day inherit the estate understand the plan.
I try to treat my own family differently. I hold formal annual family meetings because I believe financial education should occur while parents are still present to explain decisions, answer questions, and allow children to learn from their mistakes.
This doesn’t mean giving your child a bunch of money and walking away. It can start smaller. Families can explain how investments work, how businesses create value, how estates are managed, and how professionals such as financial advisors, attorneys, trustees, and business leaders are involved.
They can also give younger family members a chance to make financial decisions before involving the entire family estate.
Explain the purpose of wealth
Just as importantly, I think families need to explain what wealth is used for. Money can support a family and support employees, businesses, charities and communities. If the next generation only sees wealth as a bigger house or a more expensive car, then we can’t account for all the responsibilities that come with it.
The UBS Next Generation 2026 report found that many younger family members already associate wealth transfers with greater responsibility. More than half also believe these conversations should begin in childhood or adolescence.
Some parents may worry that discussing wealth too early will reduce motivation. They may worry that children who know what they can inherit will feel less pressure to build a career or support themselves.
I understand the concern. But transparency doesn’t necessarily mean rights.
Expectations to continue working
Parents can explain the family’s financial situation while making it clear that each generation is expected to work, contribute and make responsible choices. In fact, I believe these expectations are easier to understand when they are discussed openly.
The solution doesn’t need to be complicated.
Start with a simple conversation. Explain what this family has built and why it is important. Discuss key assets and responsibilities. Introduce the people who help manage them. Provides opportunities for younger family members to learn about investing, business, philanthropy and financial decision-making. Then return to these conversations as the family and their circumstances change.
This goes beyond the family. If an heir inherits a business without understanding it, employees may face uncertainty. If siblings have different expectations, property and investments can be a source of conflict. If no one knows who is responsible for what, it becomes more difficult to make decisions at the wrong time.
Great transfers of wealth should not be viewed as simply the movement of money from one generation to another. Families are also shifting businesses, responsibilities, relationships, values and decisions that may affect others for years to come.
We spent years discussing how much wealth would change hands. I think it’s time to spend just as much time preparing the hands that will receive it.
James Harold Webb is an entrepreneur, investor and author. Drawing on decades of experience building and managing businesses in the healthcare and fitness fields, he writes and speaks about financial responsibility, resilience, family wealth, and long-term planning.
The views expressed are the author’s own.