Jeremy Enlow
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The Great Wealth Transfer
In recent years, our clients have increasingly sought guidance on conveying assets to the next generation and their preferred charitable causes. This surge in activity marks what is now known as the Great Wealth Transfer.
Understanding the Great Wealth Transfer
The Great Wealth Transfer is projected to be the most significant transfer of wealth in U.S. history. With the Baby Boomer generation now aging, many are in retirement and hold substantial wealth amassed through business ownership, investments, gifts, and estate transfers. Over the next 20 years, nearly $84 trillion is expected to be passed on to heirs, with approximately 15% designated for charity. This transfer encompasses business and investment assets, property, and other non-cash assets. In Texas alone, it's anticipated that nearly 50% of privately held land will change ownership over the next 15 years, much of it through inheritance.
The Challenge and the Opportunity
This shift presents both challenges and opportunities for families, beginning with those who have accumulated the wealth. The first step is to start planning. While facing the inevitable is difficult, without planning, a significant opportunity can be missed.
Discussions typically begin with analyzing a client’s long-term needs and often evolve into thoughtful consideration of what will best serve their loved ones and impact the community. Words like “legacy” and “giving back” frequently arise. Working with a philanthropic advisor, such as the North Texas Community Foundation, can be instrumental in these conversations.
The Estate Planning Process
Once clients have an initial idea of where they want their assets to go, they’re ready to start the formal estate planning process. This should be guided by a CPA or tax attorney specializing in estate planning. Such a professional needs to understand the client on a personal level, including unique family circumstances, to properly guide the development of an estate plan.
Family Communication
After clients solidify their estate plan, it can be beneficial to hold family meetings to communicate values, expectations, plans, and any concerns. Laying this groundwork carefully helps minimize the potential for conflict when assets are transferred to heirs and charitable organizations.
A professional advisor can play a valuable role in this process, providing family members with insights and an objective perspective. They can also assist with financial education, preparing heirs for the significant change in their financial circumstances.
The Overall Process
This Great Wealth Transfer is an opportunity for positive impact. The keys to successful participation include recognizing the need for careful planning, finding the right CPA or estate planning attorney to guide the process, and thoughtfully preparing heirs for a substantial wealth transfer. Then, you can enjoy the satisfaction of knowing you’ve made a positive difference.
Jeremy Enlow
Headshots Square Crop - Amanda Lewis
Amanda Lewis, CFRE
Amanda Lewis, CFRE, has over 20 years of experience in nonprofit fund development. As Director of Charitable Gift Planning for the North Texas Community Foundation, Amanda works closely with professional advisors to develop and manage custom charitable giving plans for their clients.
Jeremy Enlow
Joseph D. Taylor, CPA
Joseph D. Taylor, CPA, is chairman of the board of managers of JTaylor and Associates and has more than 40 years of experience in business advisory and tax planning. Joe embraces his leadership role in the firm while continuing to serve numerous clients, including corporations, partnerships, limited liability companies, and other entities. Actively involved in civic and nonprofit organizations, Joe currently serves on the board of directors for the North Texas Community Foundation, which honored him as the 2024 Professional Advisor of the Year for exceptional client service.
