The Great Intergenerational Wealth Transfer Tips & Myths
- Cam Irvine
- Apr 21
- 3 min read
You may have heard the phrase The Great Intergenerational Wealth Transfer. It’s a mouthful, but it refers to something very human: over the next few decades, a huge amount of wealth will move from one generation to the next. In New Zealand and around the world, people are inheriting homes, savings, investments—or sometimes, just decisions to make.
For many, this idea might feel distant or even a bit awkward. Money and family are two things we often avoid mixing in conversation. But here’s the thing: if you still have parents, grandparents, or even older aunties and uncles, there’s a good chance you might one day inherit something. And that’s worth preparing for—emotionally, practically, and financially.
Here are three things to keep in mind when it comes to your Wealth Transfer:
#1 Receiving an Inheritance: A Gift, But Also a Responsibility (Tip & Myth)
The quote 'with great power comes great responsibility' could have just as easily been about 'great money', because inheriting wealth sounds like a good problem to have... And in many ways, it is. But when the time actually comes, it can feel overwhelming. You might wonder, Am I making the most of this? What if I mess it up? Should I pay off debt, invest, give to the kids, or put it away for retirement?
The truth is, having more options doesn’t always make decisions easier—it can make them harder.
That’s why having a financial sounding board, someone to help you weigh your choices and understand the long-term impacts, can make a huge difference. Ideally, you talk to someone before anything happens—not just after. Extra, ideally, that person is a professional, who knows how to help navigate that chat.
#2 Eventually, the Roles Reverse (Tip)
It’s a funny thing about time—it moves faster than we expect. One day we’re the ones with ageing parents, and the next we’re the ones writing Wills and wondering how best to support our adult children.
There’s a quiet truth in the old saying, “this too shall pass.” At some point, we’ll all pass on what we’ve built, whether it’s a house, a bit of savings, or just the example we leave behind. The best way to make sure what we leave is helpful—not confusing or burdensome—is to have the right documents in place.
A valid Will is essential. Enduring powers of attorney are equally important, especially if your health changes suddenly. For some families, setting up a trust might also make sense. These aren’t just boxes to tick—they’re practical tools that can protect what you’ve worked hard for and reduce stress for your family when it matters most.
#3 And Sometimes, There’s Nothing Left to Pass On (Tip & Myth)
Not everyone will leave behind a tidy inheritance. In fact, with people living longer than ever before in New Zealand, a lot of retirees will need to stretch their savings further than expected. Long-term care—whether at home or in a facility—can be expensive, and it’s often needed for years, not months.
It’s entirely possible that someone could enter retirement with $500,000 saved and see most of it go toward care costs. That doesn’t mean they did something wrong—it just means they lived a long life in a system that’s changing.
But planning ahead, even just a little, can help protect against that risk. There are ways to structure your finances that can preserve some wealth, or at the very least make sure your needs are met without putting pressure on your family.
Start thinking about your Great Intergenerational Wealth Transfer before it's here
The Great Intergenerational Wealth Transfer can be great, but like all things in life, it's not guaranteed to be. Money is a deeply personal topic, and so is family. But waiting for a “perfect time” to talk about either usually means waiting too long. Whether you're potentially inheriting or thinking about what you’ll one day leave behind, starting the conversation now can help avoid confusion and regret later.
You don’t need to have all the answers—just a willingness to ask a few good questions. That’s often where clarity begins.
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