The great wealth transfer

As the baby boomer generation continues to age, we stand on the precipice of an unprecedented transfer of wealth. Termed the “great wealth transfer,” an estimated $68 trillion is expected to change hands from the baby boomers to their millennial heirs over the next few decades. This generational shift in wealth presents a tremendous opportunity for millennials to shape their financial futures, address societal challenges, and foster positive change in various aspects of life. In this article, we explore how the great wealth transfer to millennials will help pave the way for their success and make a lasting impact on society.

The influx of wealth into the hands of millennials will undoubtedly bring about economic empowerment. With this newfound wealth, millennials have the potential to invest in businesses, start innovative ventures, and drive economic growth. As digital natives, millennials possess a unique understanding of technology and can harness it to create disruptive business models, drive sustainable entrepreneurship, and catalyze job creation.

With the great wealth transfer, millennials will have increased access to quality education and skill development opportunities. Higher education can equip them with the knowledge and expertise needed to tackle the complex challenges of the future. Additionally, millennials can invest in vocational training, online courses, and mentorship programs to enhance their skills in emerging fields like artificial intelligence, renewable energy, and sustainable development. This focus on education and skill development will enable millennials to thrive in the rapidly evolving job market.

Millennials have consistently shown a strong inclination towards social responsibility and making a positive impact on society. As they inherit wealth, millennials will have the means to address pressing social and environmental issues. They can allocate resources towards sustainable initiatives, fund research for groundbreaking medical advancements, and support causes that align with their values. Moreover, the combination of financial resources, technological prowess, and an innate desire to effect change can drive millennials to become impactful philanthropists and catalysts for social progress.

The great wealth transfer offers millennials an opportunity to reshape economic inequalities. By utilizing their newfound wealth to invest in underprivileged communities, support social enterprises, and advocate for fair economic policies, millennials can contribute to a more equitable society. They can prioritize responsible investments, promote sustainable business practices, and engage in impact investing to bridge the wealth gap and create a more inclusive economy.

Millennials’ familiarity with technology and their appetite for innovation position them as agents of change. The great wealth transfer can fuel groundbreaking advancements in various fields, such as renewable energy, healthcare, artificial intelligence, and clean technologies. Millennials can invest in research and development, collaborate with experts, and support startups focused on cutting-edge technologies. This commitment to innovation has the potential to revolutionize industries, solve complex problems, and shape a sustainable future.

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The Baby Boomer Wealth Transfer to their Children

The Baby Boomer generation, born between 1946 and 1964, has long been regarded as one of the largest and most influential generations in history. As they are now reaching retirement, the process of Baby Boomers passing down their wealth to Millennials/GenZ/GenX, has begun. Trillions of dollars will change hands over the coming years. The beneficiaries of this wealth transfer, primarily Generation X and Millennials, will have the opportunity to inherit assets such as real estate, financial investments, and family businesses. The 2008 recession decimated the younger generations, their earning potential, and their ability to reach certain milestones. The transfer of wealth may help correct that course, somewhat. The magnitude of this transfer also raises questions about how the younger generations will manage and utilize their inherited wealth, potentially shaping their financial futures and societal outcomes in the years to come. If you reside in the United States, you may find some of these options helpful when it comes to transferring your property.

When it comes to housing, however, there may be alternatives to look at, rather than simply passing it through a Will:

  1. Passing down that money in the form of a Trust ( a revocable living trust or an irrevocable trust)
  2. Gifting the house (this can include gifting property while you’re still alive)
  3. A life estate (Life estates can create a kind of joint partnership)

  4. A 1031 Exchange for Investment Properties (deferring capital gains)


You can read more about the options available, here.

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Can a beneficiary sue an executor?

Can you sue an executor? We have written about the importance of Wills. How everyone should have  a Will, to make sure that their assets go to the right people, etc. Have you ever wondered what happens when a disgruntled beneficiary decides to sue the executor of a Will? Is it to get a larger amount of money from a deceased person’s estate? Is it because they felt slighted by an executor? 

The executor is in charge of managing someone’s estate when the person in question passes on. This is listed in the deceased’s Last Will and Testament. The deceased person’s estate and assets are dispersed to the beneficiaries of the Last Will. There are rights that executors have when it comes to dispersing assets, including the right to collect a fee for their time and effort. This is all depending on where you live and what the laws are. Beneficiaries, on the other hand, have the right to request that an executor (for whatever reason) step down from their role, and upon request, receive updated information on the deceased’s estate, including information on the financial details of what was left behind. Again, this is dependent upon where you live. 

If a beneficiary feels that the executor is misappropriating funds from the estate, then the beneficiary may try to sue the executor, who is supposed to act in the best interests of the deceased’s estate. To sue an executor would mean a lot of paperwork and evidence of misappropriating funds. This would include the following: Failure to provide the proper financial statements regarding the estate when asked, delaying the dispersing of the assets without any proper reasoning provided, supposedly favouring one beneficiary over the other, not properly managing the estate, using the assets in the estate to make extremely risky investments, and an executor pretty much failing to meet the legal and financial obligations of his/her position. 

All of these can be grounds for the potential to sue an executor. You can read more, here.

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The usual reasons for not having a Last Will..

An Angus-Reid poll shows the reasons as to why Canadians don’t have Wills: a) few assets to worry about, b) the dislike over thinking about death, and c) the time-consuming nature of writing a Will and the confusion surrounding writing a Will (this can be solved through a DIY service, such as FormalWill.ca). 

These are the usual reasons as to why people put off creating a Will, and these reasons have been consistent over a number of years that Angus-Reid has been running this survey across Canada. 50 percent of Canadians don’t have a Will; and four in five Canadians who don’t have a Last Will are under the age of 35. 

The study found the following interesting statistics on why Canadians don’t have Wills: 

  • Individuals in households with incomes below 100k are twice as likely to claim that they have no assets to leave behind, and therefore, less likely to create a Will 
  • One-in-eight Canadians who have Wills (13%) are out of date
  • Men and women are (almost) as equally likely to claim that they don’t have Wills
  • Canadians  in Manitoba (32%) and Saskatchewan (34%) are the least likely to have updated Wills
  • Two-thirds (63%) of Canadians surveyed in the lowest income households say they do not have a Will
  • 24% of Canadians surveyed claimed that they didn’t have a Will because they were too young to have one
  • The survey was conducted online from Jan. 31 to Feb. 2, 2023
  • The survey sample was conducted among a randomized sample of 1,610 Canadian adults

The trickiest part of actually sitting down and doing a Will has to do with a lack of assets; with inflation rising the way it is right now, it’s no wonder that many people have put off creating a Will. But as we’ve seen time and time again, people tend to put off these important documents right BEFORE a trip, or before a surgery. It’s always good to re-evaluate your assets and what you want to have done. You can have your Will, Power of Attorney and Living Will done through FormalWill.ca. You can read more about the survey, here.

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