RBC Wealth Management survey: A generational look at the Great Wealth Transfer shows financial advisors to play a pivotal role in a smooth transition

Successful wealth transfer requires communication to guide heirs, and financial advisors are uniquely positioned to help families navigate conversations about legacy and values

Key highlights:

• Just 17% of Baby Boomers say their heirs are 'very well informed' about their level of wealth.
• There is a significant gap in the percentage of Baby Boomers who agree it's important to talk about an inheritance with those who will receive it (89%) and the percentage of Baby Boomers who have actually provided guidance to their heirs about their intentions (39%).
• Among both individuals leaving an inheritance and those receiving one, only about half feel very prepared.
• Across Baby Boomers, Gen Xers and Millennials, wealthy individuals identified financial advisors as their primary resource to consult about inheritances.

MINNEAPOLIS, May 8, 2025 /CNW/ - The nearly $100 trillion dollars estimated to pass from older to younger generations by the year 2048* sets up a new era of wealth transfer, as more families than ever before will be impacted by a material transfer of wealth. Yet, despite the large amounts of wealth set to change hands, research from RBC Wealth Management – U.S. found that families aren't adequately preparing for this transition and are looking for guidance and assistance facilitating important conversations about money and family values.

To help wealthy families navigate these conversations and prepare to transition their wealth, RBC Wealth Management surveyed 1,500 high-net-worth Americans between the ages of 28 and 78, exploring the mindset of Baby Boomers planning to leave an inheritance ("Givers") and Millennials and Gen Xers planning to receive one ("Receivers"). The survey focused on family dynamics and generational priorities related to wealth transfer.

Wealth transfer offers an opportunity to pass on values as well as money
The survey results reinforced that wealth transfer is about more than money; it's about family legacy and aligning priorities, passions and values with the next generation.

"A successful wealth transfer is about making sure beneficiaries understand what they may receive and how their inheritance can be used to carry on family values," said Angie O'Leary, Head of Wealth Strategies and Solutions at RBC Wealth Management – U.S. "This is an opportunity to create a legacy that continues many generations into the future."

All three generations overwhelmingly agree that family values are the foundation of their financial values (93% of Baby Boomer, 98% of Gen X and 95% of Millennial respondents). Additionally, all generations (89% of Baby Boomer, 98% of Gen X and 97% of Millennial respondents) feel it's important to discuss inheritances with intended recipients.

Yet, the survey showed that only half of Givers (52%) have had conversations about values with their intended beneficiaries, and only 39% have provided guidelines for the wealth.

Consequently, only half of Receivers (54%) feel prepared to receive the $2.1 million, on average, they are set to inherit.

The primary driver of feeling unprepared is a lack of communication. Givers who have shared their values with intended beneficiaries (39%) are much more likely to feel very prepared to leave an inheritance, 71% compared to 51% of all Givers. Still, 67% of Givers admit to putting off these conversations.

Delaying these conversations also contributes to Givers' perception that their heirs aren't prepared to manage the wealth. Only a quarter (26%) of Givers feel their beneficiaries are very prepared for their inheritance. In reality, 99% of Receivers intend to respect their parents' wishes for the wealth, and their top concern is being financially responsible with what they receive.

Conversations set the stage for planning and preparation
Open dialogue is the starting point for building an effective wealth transfer plan. A well-thought-out plan allows Givers to enjoy life today, while also helping their family and witnessing the impact of their wealth when their heirs need it most. Those who have already begun transferring wealth during their lifetime – just over 1 in 10 Givers – are significantly more likely to have had conversations about values with their heirs.

Among Givers, 84% say ensuring their family is financially secure for generations is a top priority, but 75% of Givers also want to enjoy life now, even if it means passing on less to their heirs.

"When clients have a personalized retirement income plan and know they will be able to fund the life they envisioned for themselves, they are more open to starting the wealth transfer earlier," O'Leary said. "And, beginning to transfer wealth while living can be a powerful tool for starting the dialogue about values and preparing heirs."

Financial advisors uniquely positioned to facilitate family discussions
Both Givers (65%) and Receivers (94%) also say they would like professional help facilitating family conversations about inheritance. Financial advisors are well positioned to help clients navigate discussions about values and legacy as a natural extension of estate planning.

Financial advisors are, by far, the primary resource wealthy individuals across all generations consult to learn more about inheritances (78% of Baby Boomer, 71% of Gen X and 67% of Millennial respondents), compared to accountants, attorneys, friends and family and online resources. These individuals are specifically looking to their financial advisor for advice on investment strategies, tax minimization, maintaining assets and preparing the next generation.

"These findings present a clear opportunity for financial advisors to be proactive in reaching out to clients to facilitate multi-generational wealth transfer conversations," O'Leary said. "It's also a good reminder for families to speak to their financial advisor for help with wealth transfer discussions and decisions – sooner rather than later."

About the Wealth Transfer survey
A 15-minute online survey was conducted in September 2024. Respondents included 1,500 Americans aged 28 to 78 with at least $1 million in investable assets. Of those surveyed, 500 were from each of the Baby Boomer, Gen X and Millennial generations, spread across gender, race and geography.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

About RBC Wealth Management – U.S.
Founded in 1909, RBC Wealth Management delivers trusted advice and world-class wealth solutions to individuals, families and institutions. A subsidiary of Royal Bank of Canada (RBC), it is one of the largest full-service wealth management firms in the U.S., supporting the complex needs of high-net-worth and institutional clients by providing access to private banking, credit, investment management, asset management and other services. In the United States, RBC Wealth Management had $667 billion in total client assets (as of January 31, 2025) with more than 2,200 financial advisors operating from 192 locations in 42 states. RBC Wealth Management, a division of RBC Capital Markets, LLC, registered investment adviser and Member NYSE/FINRA/SIPC. Learn more at rbcwm.com.

* The Cerulli Report, U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024

Media contact
Hannah Pederson, RBC Wealth Management, 612-371-2365, hannah.pederson@rbc.com

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SOURCE RBC Wealth Management - U.S.