Advisors who wish to benefit from the intergenerational “great wealth transfer” that’s already underway must develop relationships now with clients’ spouses and children, according to a new report from Cerulli Associates. That’s because a substantial portion of the $124 trillion in assets that Cerulli expects to be passed down through 2048 will first be transferred horizontally between spouses, it says.
Of the total $124 trillion expected to change hands, $105 trillion will flow to heirs and $18 trillion will go to charity, according to “The Cerulli Report — U.S. High-Net-Worth and Ultra-High-Net- Worth Markets 2024.” Heirs are already inheriting around $2.5 trillion annually, says Cerulli. It projects this figure to exceed $3 trillion by 2030 and to top $4 trillion around 2036.
The Biggest Givers and Receivers
The majority of the $124 trillion of assets being transferred (79%) will come from baby boomer households, Cerulli reports. And although high-net-worth and ultra-high-net-worth individuals comprise just 2% of households, they’ll contribute more than half of the total wealth transferred over the next 25 years ($62 trillion), it says.
As for asset transfers between spouses, Cerulli estimates this will add up to $54 trillion over this time period — with nearly $40 trillion of this going to widowed women. This demographic shift emphasizes the growing need for financial services tailored to women, who are increasingly taking charge of household wealth management.
Looking far ahead, Cerulli notes that millennials are projected to inherit the most wealth — $46 trillion over the next 25 years. However, Gen X will lead in the short term, inheriting $14 trillion in the next decade compared with millennials’ $8 trillion. Gen X households are already inheriting more than $1 trillion annually, Cerulli reports.
Chayce Horton, a senior analyst at Cerulli, believes the ability of wealth managers to build strong relationships with younger generations is critical. “With $85 trillion flowing to Gen X and Millennial heirs, firms that adapt their services to meet the needs of these investors will thrive,” he said in a press release.
Building connections with clients’ families is already becoming a top priority. Nearly 90% of high-net-worth practices surveyed by Cerulli in 2024 highlighted family meetings and ongoing communication as essential to their growth strategy. These practices not only help retain assets across generations but also address the differing financial preferences of women and younger investors. For example, they are often more interested in education, personal services, alternative investments and philanthropy.
“Ultimately, there are notable differences in service and product preferences among women and next-generation clients compared to current client demographics,” said Horton, “and as wealth moves, these differences are likely to shift market share in favor of firms that are best prepared to meet the needs of those recipients.”
