A generational shift is emerging among wealthy Americans planning to pass their fortune to heirs and philanthropic causes, according to a survey report published this week by Charles Schwab.
The researchers polled more than 1,000 Americans across the age spectrum, all with a minimum net worth of $1 million. They found that younger people aim to break from tradition by opting to transfer more of their wealth during their lives, rather than waiting until after death.
Younger people are also planning a more “prescriptive” approach to how their wealth is used, according to the survey.
Schwab’s survey shows that among wealthy Americans, 97% plan to transfer at least some of their wealth, with 36% preferring that the next generation enjoy the majority of their wealth while they’re still living and 39% preferring to preserve their money for the next generation until after they pass away.
Overall, wealthy Americans say that passing at least some of their wealth during their lifetime is important because they can help provide financial support and assistance to their beneficiaries, share in their joy and make memories together.
At the same time, most wealthy Americans anticipate a mix of both approaches, with plans to distribute about 40% of their assets during their lives.
See the accompanying slideshow for a review of seven key findings from the new survey.
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