Why half of wealthy families still don't have a complete wealth transfer plan: BNY

New research from BNY Wealth reveals a significant gap in the transition of family fortunes. While the financial industry has long anticipated the Great Wealth Transfer as a singular event, reality shows a much slower, more complex process. Their latest study of over 500 ultra-high net worth families finds that 53% of households still lack a fully completed wealth transfer plan.

Alvina Lo, head of advice, planning and fiduciary services at BNY Wealth, points to longer lifespans and concerns over heir preparedness as primary drivers of this delay. Wealth owners often hesitate to move assets because they doubt the next generation is ready to manage the responsibility. This concern is particularly acute among older wealth owners who understand the complexities of family dynamics and the weight of managing significant capital.

There is a notable disconnect between intent and action. Many families express an interest in transferring assets during their lifetime to witness the impact, yet 55% of total wealth is still expected to pass only after the owner dies. Advisors play a critical role in bridging this gap by moving beyond tax strategies to address the human elements of succession.

Successful planning now requires advisors to facilitate difficult conversations about trust structures and formal guardrails. Methods such as age thresholds, professional trustee reviews, and education requirements are becoming standard tools for families seeking to maintain control while distributing assets. By addressing these concerns early, advisors can help clients navigate the transition effectively rather than waiting for a forced liquidity event.

Ultimately, the timeline for wealth transfer is not a fixed date but something families and their advisors can influence. Those who prioritize open communication and early readiness planning are better positioned to retain assets across generations. The focus for modern wealth management is shifting toward the how and the who of the transfer, ensuring that both the financial assets and the intended legacy remain secure.