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There’s nothing like using the word “great” in a phrase to get people to sit up and take notice, especially in our industry. The Great Depression, the Great Prosperity, and the Great Recession all identified periods in our history with significant economic impacts.

Now, the Great Wealth Transfer is coming. Or, considering that the oldest baby boomers are nearly 80 and the oldest Gen Xers turn 60 this year, it’s no doubt already here. So, what does that mean for you? Two crucial statistics stand out: 1) It’s estimated that $124 trillion will change hands by 2048¹ and 2) More than 80 percent of heirs fire their parents’ advisors after inheritance². This could present a serious risk—but also a “great” opportunity—for the future of your advisory business.

The end of one’s life is never easy to talk about. However, many clients may not have an optimal plan to ensure their assets pass efficiently when they are gone. Outside of basic wills and POAs, many higher-net-worth families can take advantage of the higher estate tax exemption from the Tax Cuts and Jobs Act (TCJA). This current law is set to expire at the end of 2025.

The estate and gift limits are unified, meaning that gifting above the annual exemption amount ($18,000) counts towards the limit, as do certain assets passed to heirs at death. Before the passing of the TCJA, the lifetime exemption for estates and lifetime gifting went from 5.49 million to $11.18 million and currently sits at $13.61 million in 2024. That is the amount per person. Remember that for a married couple, each spouse gets a $13.61 million lifetime exemption, and any unused amount is portable to the surviving spouse, meaning if a spouse dies and has not used any of their lifetime exemption amounts, the surviving spouse's exemption amount would double to $27.22 million in 2024. Below are a few estate planning strategies you can utilize to help higher-net-worth families transfer their wealth more efficiently.