Stories of sudden wealth rarely end the way people expect. From lottery winners to professional athletes, the headlines often follow a familiar pattern: a financial windfall arrives — and disappears just as quickly. These stories aren’t about irresponsibility as much as they are about preparation.
At Moran Wealth, we see a quieter, more personal version of this challenge unfolds within families. Parents and grandparents spend decades building financial security, only to wonder whether the next generation will know how to manage, preserve, and respect what they’ve worked so hard to create. That concern is both understandable and valid — and it’s where wealth stewardship becomes essential.
The Intergenerational Wealth Transfer
The United States is experiencing a significant intergenerational transfer of wealth, a trend that has been widely discussed in demographic and economic research. Over time, substantial assets are expected to pass from older generations to heirs, influencing household finances and long-term financial decision-making across the country.
While most acknowledge that conversations around inheritance and legacy are important, far fewer have taken steps to formalize those discussions or prepare heirs for the responsibility that comes with inherited wealth.
Without planning and communication, wealth transfers can feel sudden — even overwhelming — for those receiving them.
Why Financial Literacy Alone Isn’t Enough
Financial literacy plays a critical role in helping individuals understand saving, investing, credit, and spending. But wealth stewardship goes beyond knowledge of financial concepts.
Stewardship focuses on helping heirs:
- Manage wealth thoughtfully
- Protect assets across different life stages and market environments
- Understand the purpose behind the wealth they receive
When money arrives unexpectedly, it’s often treated as a windfall rather than as part of a longer family story. That mindset shift is human —but it introduces risk if heirs haven’t been given context, education, or guidance ahead of time.
Common Challenges During Wealth Transitions
As assets move from one generation to the next, families often encounter challenges such as:
- Lifestyle expansion driven by newly available resources
- Unrealistic expectations shaped by recent market performance
- A lack of coordination between estate plans, tax considerations, and family goals
- Behavioral pressures, including emotional spending or outside influence
Research in financial behavior and decision-making indicates that these challenges are often influenced by emotional responses to new wealth rather than market conditions alone.
Building a Framework for Stewardship
Many families find that focusing on preparation rather than control can help support a more thoughtful transition.
Several practices are commonly associated with stronger long-term outcomes:
- Intentional Family Conversations: Regular family discussions help align expectations and values across generations. These conversations don’t require sharing every financial detail, but they do provide clarity around intent, priorities, and responsibility.
- Early and Ongoing Financial Education: Introducing children and young adults to earning, saving, investing, and credit helps build confidence well before meaningful wealth is transferred. Over time, education can expand to include discussions around trusts, taxes, and long-term planning.
- Thoughtful Planning Structures: Estate and legacy planning tools including trusts with age- or milestone-based distributions can provide guidance without being restrictive. These structures are designed to support maturity, not limit opportunity.
The Human Side of Wealth Planning
Wealth transitions are rarely just financial events. They are emotional, relational, and deeply personal. Successful planning recognizes this reality by addressing both numbers and behavior.
Professional guidance often plays a facilitative role helping families articulate goals, manage expectations, and navigate sensitive conversations. Listening, empathy, and long-term perspective are just as important as strategy when wealth is involved.
From Windfall to Legacy
Wealth stewardship can reframe inheritance. It can help families view money not simply as something to spend, but as something to care for, manage thoughtfully, and protect overtime.
With open communication, early education, and intentional planning, families can create legacies that support opportunity rather than uncertainty.
Start the Conversation Today
If your family is thinking about how to prepare the next generation for financial responsibility and long-term stewardship, we invite you to meet with one of our financial advisors who can facilitate a thoughtful discussion, identify key planning considerations, and help organize potential next steps.
Sources:
- CFA Institute. (2023). The great wealth transfer: Myths and reality.
- Harris Poll. (2025). America’s Great Wealth Transfer: Helping financial firms prepare for the intergenerational transfer of familial assets.
- Lin, J. T., Bumcrot, C., Lusardi, A., Valdes, O., Mottola, G., Ganem, R., Sarver, S., Kiefer, C., McLaughlin, R., & Walsh, G. (2025). Financial Capability in the United States: Results from the FINRA Foundation’s National Financial Capability Study (6th edition). FINRA Investor Education Foundation.
- Urban Institute. (2024). The Great Inequality Transfer: Unpacking the relationship between homeownership and intergenerational wealth transfers.
- World Economic Forum. (2025). Why the great wealth transfer could reshape the global economy.