Market Insight by Richard Albrecht - Passing on the torch: navigating intergenerational wealth transfer

The transfer of wealth between generations is a key milestone in a family’s life cycle, marking the handing down of the previous generation’s efforts and the opportunities awaiting the next.

As baby boomers – one of the wealthiest generations in history – begin the process of passing on their accumulated assets, millennials are expected to inherit up to $100 trillion over the next 25 years .

This shift is crucial for wealth managers, in order to seize the opportunities presented by this new situation.


Understanding wealth transfer

Intergenerational wealth transfer involves all assets, including property, investments, businesses, and personal valuables. This process is not merely transactional – it is profoundly interwoven with the family’s heritage, values, and aspirations.

Recent decades have seen a shift towards more complex financial environments and regulatory landscapes, transforming how wealth is transferred. This requires sophisticated planning and strategies.

Furthermore, the next generation has a different set of priorities to the current one. According to the 2023 Swiss Banking Outlook, opportunities for the Swiss banking sector over the next 12 months, aside from rising interest rates, include improving the digital customer experience and promoting sustainable finance.