The four-year phenomenon known as America’s ‘Peak 65® Zone’ (2024–2027) will reach its apex in 2025, with an average of 11,400 Americans turning 65 each day. It will mark the highest number of people reaching age 65 in a single year (4.18 million).  As a result, retired baby boomers will begin the largest transfer of personal assets in history. Research estimates that approximately $124 trillion will change hands through 2048, with $105 trillion passing to heirs and the rest to charity. Families who plan carefully and thoughtfully can protect their intentions, preserve their legacy, reduce taxes, and strengthen the financial position of the next generation.

According to Cerulli Associates, only 19% of investors work with their parents’ advisor. Because of this, continuity can break down when wealth transfers, meaning families may lose important context when they need it most. Asset owners (and their advisors) who communicate with spouses and adult children before transferring assets can maintain that connection and consistency, helping to reduce the risk of rushed decisions after a death or incapacity event. Family meetings enable asset owners to outline their goals so beneficiaries understand the plan and have the necessary contacts and information. Here are some other important ways to prepare for a smooth transfer of wealth to beneficiaries.

Preparing for Wealth Transfer

Align the estate framework with beneficiary designations: An estate plan and its beneficiary designations should work together. For example, the way accounts are titled, along with pay-on-death instructions and named beneficiaries on retirement accounts, can determine how assets transfer—sometimes more quickly and decisively than through a will or trust. Additionally, the SECURE Act mandates most non-spouse beneficiaries to fully withdraw inherited IRAs and workplace retirement accounts within 10 years of the original owner’s death. Certain heirs, such as surviving spouses and other eligible designated beneficiaries, follow different withdrawal timelines. With an understanding of these rules, asset owners can strategically time distributions to help manage tax brackets, limit potential Medicare surcharges, and maintain a healthy cash flow.

Take advantage of the tax code’s calendar: On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) became law, making the lower individual income brackets from the 2017 Tax Cuts and Jobs Act (TCJA) permanent. This establishes some long-term certainty for tax-sensitive plans. However, several provisions will change in 2026, making it prudent for asset owners to take action now.

• Estate tax exemption: This provision shifts to approximately $15 million per individual and $30 million per couple in 2025. This means more estates will become taxable in 2026, potentially increasing tax exposure for wealthy households.  Families who expect to exceed these new thresholds should consider reviewing their gifting strategies, trust structures, and other transfer techniques before the changes take effect.
• Qualified Small Business Stock Expansion (QSBS): The OBBBA broadens the QSBS capital-gain exclusion and shortens holding periods for partial exclusions (50% at three years, 75% at four years, full at five years or more). It also increases the per-issuer exclusion cap from $10 million to $15 million (indexed starting in 2027). For those whose wealth includes private business stock, action now can maximize favorable gains treatment.
• Other OBBBA Impacts: While not specifically wealth transfer-related, adjustments to State and Local Tax (SALT) deductions, income tax provisions, and the expiration of several clean-energy credits are all noteworthy and relevant to holistic financial planning.

Apply gifting strategies: Gifting remains a powerful tool in wealth transfer. The annual exclusion allows asset owners to gift assets to unlimited recipients annually without using the lifetime exemption or filing a tax return. The federal exclusion is $19,000 per recipient in 2025 ($38,000 for married couples who split gifts). Applying the gift exclusion, asset owners can fund custodial accounts, seed down payments (with guidelines), or support family businesses with documented loans.

Reduce taxes and do good with charitable giving: Through qualified charitable distributions (QCDs), IRA owners 70 ½ or older can transfer up to $108,000 in 2025 directly to charity, excluding the amount from taxable income. A one-time option also permits funding certain split-interest gifts within a capped amount. Families planning charitable giving can lower taxable income and strategically offset the impact of larger required distributions in future years with QCDs, enhancing wealth transfer efficiency and supporting long-term philanthropic goals.

Draft a family charter:  A one-page document that states the mission, decision-making rights, and dispute escalation can prevent disagreements from derailing plans. Paired with a contact list for advisors, a balance sheet, and instructions for bill-pay and digital assets, this package can significantly ease the burden and potential complications surrounding wealth transfer.

Plan for people, not just percentages:  Asset owners should consider their beneficiaries’ situations and whether certain assets are a good fit.  Inherited distributions may push heirs who are in their peak earning years into higher tax brackets. Pre-tax retirement accounts often suit heirs who are in lower brackets.  Roth accounts and appreciated brokerage assets can benefit heirs with higher projected rates. Family vacation homes deserve a candid conversation about usage, maintenance, and exit options.

Effective wealth transfer prepares heirs for wise money management. Education sessions, shared reading lists, and joint meetings with the advisory team can build a lasting foundation of financial stability. This encompasses assets, knowledge, values, and the decision-making structures that support them. Advisory continuity preserves the context behind decisions, from the reason a trust exists to how distributions are used, without jeopardizing long-term goals.

SHP Financial can help you create a personalized blueprint for your family’s transfer decade. We can review your plan, coordinate with your attorney and tax professional, and map actions for the coming months and years, including beneficiary alignment, tax-smart gifting, charitable options, and an education plan for heirs. Contact an SHP Financial advisor today for a complimentary review and start your transfer journey.

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