The United States is in the midst of one of the largest wealth transfers in history. With the Great Wealth Transfer underway, the latest figures from Cerulli (as of December 2024) show that $124 trillion will transfer through 2048, with $105 trillion going to heirs. Estate planning is no longer just for the wealthy—it’s something everyone with assets should consider. According to Jen Galvagna, Head of Trust, Estates and Tax at Bank of America Private Bank, and John Nebeker, a financial advisor and author of The Family Bank: The Key to Generational Wealth, having a clear plan in place is crucial for anyone looking to pass on wealth thoughtfully.
“When I start a class, I always ask, ‘What happens to your assets if you die without a will or estate plan?’ Almost always, someone answers, ‘The state takes your property,'” Galvagna says. “But that’s not true. The state simply decides where your assets go, and it may not be where you want them.”
Without a proper estate plan, your assets will be distributed according to your state’s intestacy laws, which may not reflect your wishes. Galvagna points to the case of musical legend Prince, who died without a will and left his estate tangled in a years-long legal battle.
“When you don’t plan, others will decide where your assets go,” she notes. “In Prince’s case, his music and legacy were at risk, and ultimately, the distribution wasn’t what he likely would have wanted.”
The Common Pitfalls of Inadequate Planning
Failing to create an estate plan can lead to pitfalls in asset distribution, guardianship, and financial decision-making. For parents, one of the most important decisions is ensuring that their children, especially minors, are taken care of. Galvagna suggests that an estate plan should include asset distribution, designate a guardian for your children, and provide instructions in case you become incapacitated.
“If you have minor children, you need to decide who will care for them if something happens to you,” Galvagna says. “And just as important, you need a strategy in place for what happens if you’re unable to make financial decisions for yourself.”
As the population ages, the need for estate planning has never been more urgent. Without a plan, the risks only increase as people age.
Myths About Estate Planning
One of the biggest misconceptions about estate planning is that it’s only for the ultra-wealthy. Galvagna debunks this myth, saying that anyone with assets, no matter how small, should have a plan.
“It’s a common myth that trusts are only for the ultra-high-net-worth,” she says. “Anyone with assets should have a say in how those assets are distributed. Trusts provide a way to control that distribution over time. It’s not just about money—it’s about your legacy.”
In fact, trusts allow individuals to set up long-term strategies for distributing their assets. A trust ensures that beneficiaries are taken care of for generations instead of handing them a lump sum that could quickly be spent.
The Family Bank: A Solution for Lasting Wealth
One strategy for preserving wealth across generations is the “Family Bank” concept, popularized by financial advisor John Nebeker. In his book The Family Bank: The Key to Generational Wealth, Nebeker explains how some of America’s wealthiest families, including the Rockefellers, have used this model to sustain and grow their wealth.
“The Family Bank is about creating opportunity, not entitlement,” Nebeker says. “Families replace gifts with loans, and entitlements with opportunities.”
Instead of leaving a lump sum inheritance, a Family Bank provides structured loans to heirs for significant life milestones—like education, buying a home, or starting a business. This approach encourages responsibility, and allows families to retain control over the assets, ensuring wealth is used wisely and not squandered.
For families looking to build generational wealth, the Family Bank offers a structured way to ensure assets are used responsibly, preserving long-term financial success.
Family Harmony With Transparent Communication
Family conflict is one of the biggest challenges in estate planning. Galvagna recommends open and transparent conversations with family members to avoid surprises and misunderstandings after your passing.
“There’s nothing worse than family fighting over who gets what,” she says. “Be upfront with your kids and even involve them in the decision-making process. For instance, if you have tangible property, like a family heirloom, ask your children what they’d like to inherit.”
She shares an example of a family with four children and valuable heirlooms. By having each child choose their top three items, the parents were able to distribute the property fairly without any conflict.
Protecting the Next Generation From Themselves
Parents with wealth often worry that their children will squander their inheritance. Galvagna explains that trusts can set restrictions on how and when beneficiaries can access funds, preventing misuse or financial irresponsibility.
“Trusts are a powerful tool to protect assets,” she says. “If you leave an inheritance outright, it becomes subject to divorce settlements or creditors. But with a trust, you can control how and when the assets are distributed, even for health, education, and maintenance.”
For parents concerned about their children’s ability to manage large sums of money, Galvagna suggests creating specific conditions for accessing trust funds. For example, a child may only be able to use their inheritance for buying a home or starting a business rather than for frivolous spending.
Estate Planning for Every Family
While many people think estate planning is only for the elderly or the ultra-rich, Galvagna argues that it’s something everyone should do—especially if they have children or significant assets. Whether it’s a 401(k), a house, or savings, planning ahead ensures your wishes are honored and your legacy is preserved.
“Estate planning isn’t about death—it’s about ensuring your family is protected, no matter what happens,” she says. “Whether you’re in your 40s or 70s, it’s never too early to start.”
By taking the right steps and working with a professional advisor, you can create a plan that ensures your wealth is passed on as intended—without unnecessary legal battles or family disputes.
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