The great wealth transfer — stewardship is learned

Over the next two decades, one of the largest transfers of wealth in history will quietly reshape families, investing and financial advice. Often called the Great Wealth Transfer, it will see substantial assets pass from older generations to their children and grandchildren. Head of Distribution JULIE MACLEOD-HENDERSON writes that the real significance lies not only in the value of the assets, but in the responsibility that comes with them.

For many families, wealth has taken decades to build. It reflects disciplined saving, patient investing and careful decision-making through many different market cycles. The next generation will therefore inherit more than money. They will inherit the responsibility to preserve it, grow it and use it wisely. Wealth can pass from one generation to the next in a moment. The judgement needed to manage it takes much longer to develop.

Women are expected to play a defining role in this transition. Many women outlive their spouses and increasingly inherit or control family wealth. Younger generations will also control a greater share of household wealth than before, often earlier in life. This creates opportunity, but also raises a practical question: are future investors being prepared for the decisions they will need to make?

For parents and grandparents, the task is not only to decide what they will leave behind. It is to share the values and habits that helped build the wealth in the first place. For future beneficiaries, the responsibility is to learn, ask questions and develop the confidence to make thoughtful financial decisions. Good stewardship is not instinctive, it is learned.

This matters because many beneficiaries change advisers or move inherited investments soon after receiving them. Sometimes there are good reasons: their needs may be different, or their tax position, income requirements or investment horizon may have changed. But too often, heirs inherit the assets without understanding the thinking behind them. They know what they own, but not why they own it.

That is why families should talk about wealth before it changes hands. Families that discuss financial values, long-term goals and investment philosophy help the next generation become stewards rather than merely recipients. These conversations need not begin with detailed portfolio construction or tax planning. They can start with simpler questions: what is this money for, what risks should it avoid and what principles should guide decisions when markets are difficult?

For younger investors, an inheritance can be both empowering and unsettling. Managing a meaningful portfolio may be unfamiliar. The temptation to make quick changes can be strong, especially where markets are volatile or recent performance has disappointed. Taking time to understand the purpose of existing investments before making major decisions can prevent mistakes driven by emotion, impatience or incomplete information.

The Great Wealth Transfer is therefore about more than passing on financial assets. It is about passing on knowledge, values, confidence and responsibility. Families that begin these conversations early give the next generation a better chance of protecting what has taken a lifetime to build.

This is the first in a series of articles on how families can prepare for this generational transition: from starting meaningful conversations and involving younger family members, to helping future investors understand the value of long-term investing. Wealth can be inherited, but stewardship must be learned.