The Coming ‘Great Wealth Transfer’ and Estate Planning: As a huge number of baby boomers turn 65 from now through 2027, most people should be thinking about managing their money amid the so-called “great wealth transfer,” when as much as $72 trillion is expected to move from one generation to the next. A recent article from MarketWatch, “As a $72 trillion ‘great wealth transfer’ is set to begin, here are 4 estate-planning rules to follow,” offers some tips.
Every adult should have a Will, Revocable Trust, a Living Will and a Power of Attorney. This will provide someone to manage their financial affairs if they become incapacitated, make medical decisions if one is unable, and most importantly, avoid probate at death.
To prepare for the Coming ‘Great Wealth Transfer’ and Estate Planning, one should also update beneficiary designations on 401(k)s, investment accounts, insurance policies, and any financial accounts naming a beneficiary. Whatever is on those documents supersedes provisions in one’s Revocable Trust or Will. Beneficiary designations should be reviewed every few years or after any major life events like marriage, divorce, the birth of new children or grandchildren, or the death of a beneficiary.
Secure your important documents and make sure your Executor, Trustee and a trusted family member know where they are. The Executor should also have contact information for your estate planning attorney, CPA and financial advisor.
Review your overall estate plan every three to five years. If your estate plan was created when your children were minors and now they’re adults, it’s time to revisit your estate plan.
A Will alone is almost never adequate. Most individuals benefit from establishing a Revocable Trust. Putting assets into trusts allows assets to pass to beneficiaries without going through probate, which is often expensive and time-consuming. Once the trust is established, you’ll need to fund it by retitling assets, so they are taken out of your probate estate and owned by the trust.
Wills, Revocable Trusts, and estate planning documents should be reviewed and updated on three occasions: every three to five years if your life doesn’t change much, every time there is a major event in your life, commonly called a “trigger” event and whenever there is a large change to tax laws.
The estate planning community is now preparing for the possible end of the Tax Cuts and Jobs Act of 2017, which raised the federal estate and gift tax exemptions to historically high levels. Unless the rule is extended, on January 1, 2026, these limits will return to previous amounts, with estates around $7 million subject to federal estate taxes. If your wealth is near the $7 million mark and you haven’t met with your estate planning attorney to prepare for this potential change, now is the time to make an appointment.
Once your estate plan is up to date, it’s a good idea to have conversations with family members, the people you’ve named as executors, power of attorneys and beneficiaries. If you have a plan but haven’t shared it with children or heirs, it could lead to family fights, even leading to litigation.
Your estate planning attorney will help create an estate plan to meet your needs and protect your loved ones. It’s a task to tackle sooner, rather than later.
Reference: MarketWatch (April 3, 2025) “As a $72 trillion ‘great wealth transfer’ is set to begin, here are 4 estate-planning rules to follow”
