Preparing for the Great Wealth Transfer: Strategies for passing wealth to your loved ones.

For those preparing to pass on their legacy, it’s crucial to approach this matter with thoughtfulness and care, ensuring that the transfer is meaningful and honors the values of both generations. Many are choosing to give while living or invest in multigenerational travel, fostering family bonds and ensuring that wealth transfer is about more than just money — it’s about connection, memories and shared values.

Giving while living: A personal approach

Another increasingly popular approach among baby boomers is the concept of giving while living. This strategy involves transferring assets to younger generations during your lifetime rather than waiting until after death. The method offers several benefits: It lets you witness and enjoy the impact of your gifts, and it provides younger generations with financial support when they need it most — such as during key life stages like buying a home or starting a family.

By giving while living, you can also take advantage of annual gift tax exclusions. The 2024 gift tax limit (also known as the gift tax exclusion link opens in a new window) increased to $18,000 this year from $17,000 last year. Married couples can combine their exclusions, allowing them to give up to $36,000 per recipient in 2024 for the maximum amount that can be gifted to a single person without having to report it to the IRS. Over time, these gifts can significantly reduce the size of your estate, potentially minimizing estate taxes and leaving more for your heirs.

Beyond the financial benefits, giving while living also brings opportunities for you to pass along your values and wisdom in real time. By discussing your decisions and involving your loved ones in the process, you can impart lessons about financial responsibility, generosity and long-term planning.

Multigenerational travel: Investing in shared experiences

Another popular way to transfer wealth is through multigenerational travel. This approach focuses on using wealth to create shared experiences that forge stronger family bonds across generations. Rather than simply handing over a financial gift, you can invest in meaningful trips that allow you to connect with loved ones, learn from one another and create lasting memories.

Multigenerational travel has become increasingly popular — especially since the pandemic has faded — according to a 2023 Family Travel Association (FTA) annual family travel survey link opens in a new window of over 3,300 parents and grandparents. Families are increasingly recognizing the value of spending quality time together. The survey, carried out in partnership with the NYU School of Professional Studies Jonathan M. Tisch Center of Hospitality, found that more than half of the parents surveyed were planning to travel with grandparents and children, which is “a big contributor to market growth.” The study found 54% of grandparents said they plan and organize multigenerational travel experiences and half have taken one in the past three years.

These trips can be tailored to align with your family’s interests and values, whether it's exploring ancestral homelands, engaging in volunteer work abroad or simply enjoying a relaxing vacation. Such experiences can deepen relationships, facilitate important conversations about the future, and create a legacy that extends beyond material wealth.

In addition to the emotional benefits, these trips can also be a way to introduce younger generations to the concept of responsible spending. Planning a family trip often involves budgeting, prioritizing and making financial decisions together — skills that are crucial for managing an inheritance wisely.

Where should you start?

Getting organized now — and communicating your plans with loved ones — makes for a smoother and more efficient wealth transfer. These tips can help you with a starting point to successfully transfer your wealth to the next generation, while making sure your individual wishes are carried out according to plan.

• Review your goals
  Go over your retirement plan, personal needs and sources of income. Make sure you have enough money set aside to take care of yourself, including healthcare expenses, before transferring assets to others.


• Determine how your assets will be distributed
  Take an inventory of your assets and liabilities and decide what you will give to loved ones and/or philanthropic organizations. Prepare legal documents to clearly define your wishes.


• Communicate frequently
  The sooner your loved ones know about your plans — and the responsibility that comes with any assets they’ll receive — the easier it will be to distribute your estate. By communicating early on, you can help set expectations and make your wishes clear.


• Document your plan and stay organized
  Review your plans and documents on an annual basis, or as major life events occur. Keep your documents updated, review your primary and secondary beneficiaries and make sure key people are aware of their responsibilities and know where to locate important documents.

Thoughtful planning for a successful wealth transfer

The Great Wealth Transfer is a pivotal moment in history, offering an opportunity for baby boomers to shape the future of their families. By adopting strategies such as embracing giving while living or investing in multigenerational experiences, older generations can ensure their wealth is passed along in ways that are both practical and meaningful. As this transfer unfolds, it’s important to approach the process with intention and clarity, ensuring that the legacy left behind is one of lasting impact and shared values. Your Commerce Banker can help you navigate this process.