Have You Thought About Intergenerational Wealth Planning?

Article Summary

• Inheritance can be dramatic, if you are following Hollywood storylines. 
• Imminent transfers of significant generational wealth will put women in control of sums of money they have previously not had to manage.
• Many women feel more confident in the options available to them after seeking guidance about wealth management from an experienced financial advisor.

Have You Thought About Intergenerational Wealth Planning?

Hollywood has had its way with inheritance storylines. From White Lotus to Knives Out to Succession, and countless other movies and shows in between, each storyline has its own take on transfers of wealth. Reality may look quite a bit different.

It turns out, women are more likely to be on the receiving end of an intergenerational wealth transfer. In the coming years, industry analysts are expecting to see what they have coined “the great wealth transfer” as Baby Boomers pass their wealth to their beneficiaries. That transfer of wealth includes “handing it down” to adult children or transferring it to a surviving spouse, which more often than not is a woman.

Analysts anticipate that $54 trillion will transfer to spouses, the bulk of which will go to women.

It goes without saying that receiving an inheritance may be a bittersweet season in life. That kind of transfer of wealth generally comes with the loss of a loved one, which means grief may entangle with a desire to manage that wealth responsibly. The act of inheriting wealth does not generally come with instructions or guidance. Those who want it need to seek it out.

Many women who do receive intergenerational wealth feel more confident about the choices they make with an inheritance when they receive expert guidance that outlines their options. To get questions answered and to try to settle uncertainty, some women may talk to friends or family, while others may decide to work with a financial advisor.

Navigating Wealth Stewardship

Following an inheritance, and sometimes even immediately preceding it, there is one question that stands out from the rest: What will you do with it? It is a fair question, and for some, it might be a nagging question. There are a few ways to bring an answer into focus.

Many women find it is easier to develop a plan for how their wealth will be used once they analyze the values that speak loudest to them.

Some women want to use their inheritance to plan for the wellbeing and care of their families and future generations, as well as long-term care for loved ones. Others view their wealth as a resource that can be used for educational purposes, to advance their lifelong learning or support the educational journeys of younger generations.

There are a number of other values-based focuses for wealth placement, from entrepreneurship to philanthropy to travel, wellness, or supporting environmental or social causes. Once they figure out their desired path with their intergenerational wealth, many women find that guidance from an experienced financial advisor gives them more confidence when making financial decisions.

At Svvy®, we understand that wealth transfers may sometimes feel overwhelming. For many women, it is a completely new experience that has the potential to bring with it a number of questions. As a service founded by women for women, Svvy® matches women with female-vetted financial advisors who understand the unique life transitions that women experience.

If you are navigating an intergenerational wealth transfer and would like guidance from an experienced financial advisor, take a moment to complete our financial advisor  matching quiz. Professional financial guidance, through a match with a Svvy® expert, is just one click away.

Disclosure:This content is provided for general educational purposes only and does not constitute individualized investment, legal, or tax advice. Svvy® acts solely as a solicitor and connects and matches individuals with independent third-party financial professionals through a quiz-based matching process on the Svvy® Network. Matching is based on information provided through Svvy’s platform and does not constitute any advice. Any advice, recommendations, and services are provided only by the independent professional you choose to engage.