Intergenerational Wealth Transfer
Intergenerational wealth transfer is the process of transitioning assets, control, and stewardship from one generation to the next.
Allocator relevance: A major driver of mandate shifts, decision authority changes, and governance evolution in family offices.
Expanded Definition
Wealth transfer is not just a legal event—it changes who decides, what values guide capital, and how risk is perceived. Next-gen involvement can introduce new sectors (tech, impact), new vehicles (venture, secondaries), or new governance (formal councils, ICs). It can also create friction if roles and expectations are unclear.
For allocator intelligence, tracking generational dynamics helps explain why a previously consistent mandate changes, why a new gatekeeper appears, or why decision velocity shifts.
How It Works in Practice
Transfers occur via trusts, estate planning, governance documents, and leadership transitions. Families may create education programs and councils to prepare next-gen members and maintain continuity.
Decision Authority and Governance
Governance is the difference between continuity and disruption. Strong structures define who decides, how disputes are resolved, and how investment policy evolves as leadership changes.
Common Misconceptions
- Wealth transfer is purely legal and doesn’t affect investing.
- Next-gen always increases risk appetite.
- Wealth transfer happens quickly.
Key Takeaways
- Transfer reshapes mandates, authority, and preferences.
- Governance reduces volatility during transition.
- Next-gen can be a catalyst for strategic pivot.