There is an incredible amount of wealth in the world, and all of it has to eventually get passed from its current holders to future generations.
While this is something that has always happened, it’s more important today because we’re approaching the largest transfer in recorded history as the oldest generation begins to pass away. Something like that is not something you want to approach without proper planning.
How much money is about to change hands?
The biggest question people have is how much money will move, and the answer is that it should be around $16 trillion. It’s an astronomical sum that is really very hard to get your head around. People often make the mental mistake of thinking of millions, billions and trillions and closely related numbers, but they’re not. They’re so, so far apart.
Moving $16 trillion to the next generation is going to take very careful planning and could result in massive amounts of taxes for many of those involved.
How long will this transfer of wealth take?
This transfer will take time. It’s expected to last for the next 30 years or so. Interestingly, after it has been completed, we may simply run into the same issue all over again as that generation passes their wealth on to their children. As you can imagine, keeping a close eye on this process and this amount of money, over such a long amount of time, is not easy.
What can you do to protect your wealth as it passes to your heirs?
If you’re even a small part of this major wealth transfer, you need to know what steps you can take to make things go smoothly for your family. A coherent estate plan is essential.