The Great Wealth Transfer is already underway, as trillions of dollars are set to move from one generation to the next over the coming decades. Many families are now exploring ways to distribute their wealth to heirs while still living, balancing financial goals with family harmony and long-term planning.

Chris Maudlin, CAIA®, Senior Wealth Advisor & Partner at AlphaCore Wealth Advisory, emphasizes that careful planning and transparency are essential when it comes to gifting. Families who approach this thoughtfully could reduce potential misunderstandings and ensure that wealth transfers align with their intentions.

“In some cases, a written family gifting policy or family meeting can help set expectations and reduce future misunderstandings,” Maudlin notes. “Ultimately, clear communication and proper documentation are key to preserving both fairness and family harmony.”

Some key considerations families should keep in mind include:

• Developing a Family Gifting Policy: A formal document can outline objectives, timing, and the methods of transferring wealth, helping to avoid miscommunication.
• Holding Family Meetings: Open discussions about wealth and expectations could align family members and reduce potential conflicts.
• Documenting Transfers: Proper documentation ensures clarity and helps protect both the family and advisors from disputes or confusion in the future.
• Balancing Fairness and Flexibility: Thoughtful planning allows for equitable distribution while accommodating unique family dynamics or individual circumstances.

By combining strategic planning with transparency, families can navigate the wealth transfer process more smoothly, preserving relationships and minimizing stress along the way.

For a deeper dive into gifting strategies and insights from Chris Maudlin, read the full article by Gregg Greenberg in InvestmentNews: Gifting While Living