The UK is on the brink of the largest intergenerational wealth transfer in history, with between £5.5trn and £7trn to pass between generations over the next 30 years, according to a report from Heligan Wealth Management.

The report noted that this was part of a global shift of $83trn that will “fundamentally reshape” how wealth is managed, preserved, and distributed.

Baby Boomers hold more than half (£5.1trn) of the UK’s total wealth, with Generation X and Millennials set to be the primary beneficiaries of these assets.

Despite the forthcoming movement of wealth, Heligan noted there were major gaps in preparedness.

Almost two thirds (60 per cent) of Baby Boomers were planning to leave wealth to their heirs, but only 17 per cent had a formal inheritance plan in place.

Furthermore, nearly half (41 per cent) of those in younger generations felt uncomfortable discussing wealth transfer with parents.

“Effective succession requires intergenerational communication, financial education, and structured governance, not just financial products,” said Heligan Wealth Management client director, Kieran Duffy.

“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.”

Duffy added that, for UK-based families, the tax implications of wealth transfer were particularly significant, as inheritance tax rates of 40 per cent above the nil-rate band of £325,000 left wealthy families facing substantial potential liabilities.

“The current tax regime makes strategic planning essential, not optional,” he continued. “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.

“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.”

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