2025-10-16T12:01:00
(BPT) – Over the next two decades, more than $84 trillion in wealth is expected to transfer from Baby Boomers to younger generations.
This unprecedented event, known as the “Great Wealth Transfer,” marks the largest intergenerational handoff of wealth in history. The question is: are families truly prepared?
Without proper planning, much of this hard-earned wealth can be lost in a generation. In fact, data shows 70% of families lose a portion of their wealth due to interfamilial conflict, with nearly 60% of estates ending up under court control because of improper estate planning.
This intergenerational wealth transfer has imposed unprecedented strain on familial relationships, thanks to the complex nature of today’s globalized and blended family structures, where cross-border assets and multiple marriages add new legal and emotional elements.
Blended families and families with estranged members face particular challenges, with inheritance issues often magnified in households with ex-spouses, new partners or children from previous marriages.
To further complicate matters, new spouses may have legal entitlements that clash with the expectations of children from previous relationships, leading to confusion and legal ambiguity. Without clear documentation and communication in advance, the lines between emotional attachment and financial entitlement can become blurred. In such situations, perceived slights, whether intentional or not, can easily spiral into formal disputes.
In fact, more than half of wills are contested among these families. Disputes can arise when surviving spouses are granted significant control or perceived favoritism creates resentment among heirs.
But inheritance battles among heirs aren’t the only risk. Older, high-net-worth individuals may find themselves vulnerable to manipulation by relatives acting in bad faith. Potential heirs may exploit weakened relationships or unclear succession plans to access wealth prematurely — or even take control of family businesses.
While Rupert Murdoch’s high-profile legal dispute with his children ended well for him in protecting his empire and succession plan, the ongoing legal case involving another media mogul, Polish billionaire Zygmunt Solorz, illustrates that other wealth transfer disputes may have a less favorable outcome.
Solorz is entangled in a dispute with his three children over control of his media empire. Court filings suggest that the billionaire was manipulated by his children into initiating a premature succession process, exploiting the company’s financial holdings in Liechtenstein and engaging in a hostile takeover of his business — leading to a continuous decline in stock prices and harming shareholders.
While these two examples involve ultra-wealthy individuals, the cases serve as a warning to Baby Boomers across the income spectrum on the importance of wealth management and asset protection to prevent interfamilial conflict for family businesses from Wall Street to Main Street.
For high-net-worth individuals navigating succession, governance and asset protection, caution and preparation are key. Of primary importance is the inclusion of clear, legally binding succession plans that are difficult to overturn. These arrangements should include built-in dispute resolution mechanisms, such as arbitration clauses or mediation panels, to prevent costly and public legal battles.
Further, experts stress the need for independent oversight, particularly when assets are held through foundations or trusts. Appointing neutral curators or trustees can help enforce the founder’s intent and reduce the risk of family infighting derailing a legacy. Transparent communication among family members is equally critical, especially when it comes to roles, decision-making powers and potential health issues.
In particular, planning for “what if” scenarios such as illness, mental incapacity or new family dynamics should also be part of any long-term strategy for wealth management and planning.
The Solorz case also underscores the importance of carefully selecting jurisdictions. While tax havens like Liechtenstein are often trusted for wealth management, local court interventions can still pose risks. And in cross-border arrangements, conflicting legal frameworks can further complicate matters, making proactive, well-documented planning essential.
Improper handling can fracture families, derail business empires and lead to significant loss in generational wealth.
With the Great Wealth Transfer underway, thoughtful, professional and forward-looking preparation is needed to protect assets and preserve relationships and legacies across generations.
