Wealth Transfer Planning Has a Confidence Problem, BNY Finds
As trillions of dollars are expected to change hands over the coming decades, many ultra-high-net-worth families have yet to complete the estate and succession plans needed to preserve and transfer their wealth effectively, according to new research from BNY Wealth.
The firm’s Wealth in Motion report found that only 47% of ultra-high-net-worth (UHNW) individuals surveyed said they have a comprehensive wealth transfer plan in place, while 53% acknowledged their planning remains incomplete.
The survey polled 501 individuals with at least $10 million in investable assets. Approximately 78% of respondents were men, and the largest demographic group was individuals between 35 and 44 years old, representing 33% of participants.
While many respondents have completed core estate planning documents, significant gaps remain. The survey found that 71% have established a healthcare directive or living will, 69% have a will, and 63% have executed a durable financial power of attorney. However, only 50% have created a revocable trust, 43% have an irrevocable trust, and just 31% have implemented a formal business succession plan.
The report also highlighted a lack of ongoing plan maintenance. More than half of respondents said they had not reviewed their estate plan with an advisor during the past year, while nearly one-quarter (24%) had not updated their plans in at least three years.
Despite those shortcomings, 67% of respondents expressed confidence that their existing plans will achieve their long-term objectives, citing trust in their advisors and confidence in the structure of their plans.
The survey also points to changing planning behaviors among younger wealthy investors. Among respondents under age 45, 64% said they use artificial intelligence tools to learn about wealth transfer strategies, although BNY cautioned that AI cannot fully account for complex family dynamics, tax considerations and evolving estate laws.
Family preparedness remains another significant concern. Forty-two percent of respondents worry their heirs lack sufficient financial literacy, while 45% believe the next generation has limited experience managing substantial wealth, underscoring the growing importance of education alongside estate planning as the wealth transfer accelerates.