Time to break the silence on generational wealth: Edward Jones

investmentnews.com:

A new study conducted by Edward Jones sheds fresh light on one critical, yet often overlooked aspect of family financial planning: conversations surrounding the transfer of wealth.

With an estimated $84.4 trillion expected to change hands from the baby boomers and the Silent Generation to younger demographic groups by 2045, according to Cerulli, the need to have these discussions is as great as it’s ever been.

But despite the significant impact this generational wealth tsunami will have, the research from Edward Jones – in collaboration with Next360 Partners and Morning Consult – points to a startling lack of communication among American families.

While nearly half (48 percent) of Americans intend to leave an inheritance – including 45 percent who will give it only to their children, and 36 percent who plan to include grandchildren as well – a substantial 35 percent have no plans to discuss these intentions with their family members.

“We know it can be extremely uncomfortable and nearly impossible to separate emotions from the financial decisions necessary when planning inheritance and wealth transfer, particularly as givers navigate family priorities beyond finances,” Lena Haas, head of wealth management advice and solutions at Edward Jones, said in a statement.

The study also emphasized the evolving nature of inheritance, with just over two-thirds of Americans (68 percent) acknowledging that increased longevity and higher living expenses will influence the wealth passed down to future generations.

This shift has resulted in diverse approaches to wealth transfer, Edward Jones said, including traditional giving, giving while living, and generational skips. In the most extreme cases, longer-than-expected lifespans and