The UK is on the brink of the largest intergenerational transfer of wealth in history, say Heligan Wealth Management
Baby Boomers hold more than half of the UK’s total wealth (£5.1tn), with Generation X and Millennials set to inherit these assets.
Over the next 30 years, between £5.5 and £7tn will pass between generations, part of a global shift of US$83tn that will fundamentally reshape how wealth is managed, preserved, and distributed. This is according to a new wealth management report from Heligan Wealth Management.
Kieran Duffy, client director, Heligan Wealth Management, states that, “This transition, often seen as a seismic change in financial power, mirrors global patterns, with Asia-Pacific families set to transfer $5.8tn and China $11.8tn over the same period.”
The report reveals that while the wealth movement presents opportunity and exposes major gaps in preparedness, with only 60% of Baby Boomers intending to leave wealth to their heirs, 17% having a formal inheritance plan, and 41% of younger generations feeling uncomfortable discussing wealth transfer with parents.
“Effective succession requires intergenerational communication, financial education, and structured governance, not just financial products,” Duffy continued. “There has been a clear value shift among heirs, with younger generations prioritising sustainable and impact investing, environmental, Social, and Governance (ESG) principles and technology-enabled advisory services. In time, this divergence from traditional wealth management could create tension within families if not properly facilitated.
“For UK-based families, the tax implications of wealth transfer are particularly significant. With inheritance tax rates of 40% above the nil-rate band of £325,000, high-net-worth families face substantial potential liabilities. The current tax regime makes strategic planning essential, not optional.
“Furthermore, it is more important than ever that wealth managers embrace digital transparency and efficiency, while maintaining human insight to handle the emotional and technical complexities of family wealth. Technology can only go so far when streamlining processes, but human insight will always be irreplaceable when dealing with complex family dynamics and legacy decisions.
“There are five steps that families can take to navigate the great wealth transfer”, added Duffy. “Financial education and capability-building, values alignment and open communication, comprehensive legal and tax planning, clear governance and decision-making frameworks and strong professional advisory partnerships.
“The message is clear, the time to act is now. Those who are thinking ahead and are engaging in structured, strategic planning will protect their wealth for their future generations. However, the great wealth transfer is more than preserving assets. It is about guiding and empowering the next generation to build on them. Families that are opting to proactively plan will define the future of wealth.”