When it comes to family wealth transfer, perception often depends on which side of the table you’re sitting. While many with wealth believe their heirs are prepared for inheritance, NCF’s new research reveals a significant disconnect in generational communication about wealth transfer.
Half of Next Gen Inheritors we surveyed (52%) said they feel excited about their family’s wealth transfer. Most have a vision and ideas for ways God can bring their family’s legacy to life. But beneath the enthusiasm are some negative feelings about family money. Many feel uninformed, reporting they feel “in the dark” about their role in the family’s wealth transfer. Even more – almost two-thirds (65%) – believe their voice doesn’t play a major role in decisions about the family’s wealth.
Only 28% of Christian Millennials who will inherit wealth say their family has a plan for wealth transfer and that the wealth has already begun to pass to the next generation. Another 17% report that either there is no plan or it’s unclear if a plan exists. The majority fall somewhere in the middle, believing a plan exists for their family’s wealth but also believing that the transfer hasn’t yet begun to take place.
That means a substantial 72% of Next Gen Inheritors are still waiting to fully understand their role in the family’s wealth transfer.
Meanwhile, on the other side of the table sits an older generation with a different perspective. Half of those who will be passing wealth to the next generation say a plan exists and money has already passed or has begun to pass to the next generation – a stark contrast to what their heirs are reporting.
It seems that, across many family tables, there’s a silent disconnect between the generations. Parents see heirs ready for wealth stewardship, while those same heirs – though eager – may be quietly questioning if they’re ready. The good news is that this perception gap, once recognized, can become a first step toward true family stewardship and genuine legacy building. And families who reach across the table to engage heirs early can help develop more confident and positive stewards of the next generation.
Active engagement for flourishing heirs
Since views on preparation for wealth transfer are different depending on the seat you’re in, it’s likely expectations also differ. But to be able to understand and have empathy for one another, these different points of view need to be shared and listened to.
In our research with Next Gen Stewards, we learned that those who feel they have no voice in family financial matters – not only, but especially female inheritors – showed disproportionately higher rates of negative feelings about wealth overall, less of a belief that giving can bring a family together, and lower levels of faith engagement.
The good news is, there’s a clear path out of this. Inviting all of your heirs into open conversation, where everyone’s voice is valued, has the potential to alleviate negative feelings and the heavy sense of burden many of them report feeling and build family trust.
Heirs with a financial voice and understanding of the family plan feel more positive about wealth responsibilities. They also feel more positive about family. Most Next Gens and parents agree that generosity strengthens family bonds, suggesting that transitioning the generosity legacy together can build family cohesion.
Learn more about how our newest research can help you strengthen family bonds, deepen faith connections, develop healthier attitudes about wealth sharing, and create more joyful family relationships.
Download the report today.
