
Adult kids are getting their inheritances sooner. How parents are doing it.
Subscribe to enjoy similar stories. As the young generation faces the biggest wealth transfer in decades, with baby boomers set to pass on $53 trillion to their children by 2045, wealthy families are taking a more proactive approach to their estate planning. Whether it’s family meetings, early conversations around philanthropic efforts, or educational programs to teach younger people how to manage future wealth, there’s more happening in the field of estate planning than ever before.
“It’s less likely I’ll see a client in their 70s or 80s who hasn’t started these conversations," said Anne Paape, managing director at Chicago-based private wealth management firm Cresset. The rise of family governance has been boosted by President Donald Trump’s One Big Beautiful Bill announced last April and taking effect this January. The bill increased the amount of wealth that can be passed onto future generations tax-free, permanently setting the 2026 federal estate tax exemption at $15 million per person, up from $13 million the previous year.
The exemption goes up to $30 million for a married couple. The bill also included an increase in the amount of annual gifting that can be done tax-free. Up to $19,000 can be gifted to charities yearly without being taxed.
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