Wealth Transfer: What Does It Mean?

Wealth transfer refers to the movement of assets from one person to another — either during life (through gifts, trusts, or direct transfers) or at death (through wills, beneficiary designations, and trusts). Strategic wealth transfer planning aims to minimize estate and gift taxes, avoid probate, ensure assets go to the intended recipients, and provide for dependents. Tools commonly used in wealth transfer include revocable and irrevocable trusts, 529 education accounts, annual gifting strategies, and life insurance. The Great Wealth Transfer — an estimated $84 trillion passing from Baby Boomers to younger generations over the coming decades — makes this topic increasingly relevant.