According to Bank of America Private Bank, ultra-high-net-worth investors (those possessing more than $25 million in investable assets) and high-net-worth investors (those possessing more than $3 million) are deeply engaged with the upcoming expected wealth transfer of $124 trillion by 2048. According to the bank’s recent report, “2026 Study of Wealthy Americans,” wealthy families know the effects that longer lifespans have on their assets—92% of respondents said longevity is a key factor in wealth planning—but that may not show in their actions.
“While awareness around longevity and multigenerational planning is high, the foundational elements often aren’t fully in place,” wrote Katie Carlson, Bank of America Private Bank’s head of wealth strategy, in an email to PLANADVISER.
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Only 46% of wealthy individuals surveyed by Bank of America had the basic elements of an estate plan in place, and more than half (55%) used a trust for their transfer planning, but only one-third said they understood these tools well.
This lack of understanding was also prevalent in research published in March by Empathy Project Ltd., “The Hidden Barriers to the Great Wealth Transfer.”
Many families surveyed lacked documents required for a smooth wealth transition. Only 31% of families reported having formal estate plans, 30% had finalized financial plans set in place, and more than half (53%) said their existing estate documents were incomplete, outdated or simply unfindable. According to Empathy, more than one-quarter of respondents were relying on informal or verbal plans, which offer no legal protection.
“Education is a differentiator,” wrote Ron Gura, Empathy’s CEO, in an email to PLANADVISER in May. “We found that client education is a family’s top request, yet few institutions offer it explicitly, creating a clear opportunity for advisers to lead with guidance.”
According to the Bank of America study, of the ultra-high-net-worth families who were in estate planning conversations with their heirs, most (79%) were also involving their advisers.
“Advisers can play a critical role in closing the awareness-action gap by simplifying the planning process for clients and focusing on education,” Carlson wrote. “This includes helping clients understand not just what structures they have, but how those structures function and evolve over time.”
Bank of America also found that one-quarter of family business owners said family conversations ranked among the biggest estate planning challenges.
While addressing family issues can be messy, Cody Barbo, co-founder and CEO of Trust & Will, an estate planning services provider, says it is essential to resolve the hardest parts of wealth transfer planning.
“Family is just messy, no matter what,” Barbo tells PLANADVISER. “The power of these documents is incredible, but the conversation is not happening in enough families, and advisers can be that neutral third party.”
Addressing Longevity
Beyond educational gaps, longevity risk is reshaping how wealthy investors approach transfer decisions and wealth accumulation, with 61% of Bank of America’s respondents reporting actively discussing longevity with their advisers. Instead of planning for a 20-year retirement, clients are preparing for 30- or even 40-year timelines, according to Carlson, timelines that require more flexible and durable approaches to managing assets. Portfolio construction is becoming more complex and wealthy clients are balancing the need for continued growth with income generation and liquidity, while also preserving assets for future generations.
In response to longevity concerns, “diversification is front and center,” Carlson says. “Our study shows 77% of ultra-high-net-worth respondents believe more money can be made in the private markets than in the public markets. Additionally, we see ultra-high-net-worth clients using credit strategically as part of their long-term wealth plan.”
Beyond funding day-to-day expenses, clients are increasingly factoring in healthcare costs, lifestyle goals and quality of life over a longer period, Carlson says. Additionally, the report found 94% of wealthy individuals took action to optimize their health.
The extended planning horizon can create competing priorities, particularly when it comes to timing wealth transfers. Delaying transfers may ensure financial security later in life, but it can also limit the impact of wealth passed to heirs when they may need it most.
“High-net-worth and ultra-high-net-worth investors are increasingly focused on how to transfer wealth efficiently, preserve family harmony and ensure the next generation is prepared, both financially and emotionally, to manage wealth,” Carlson says.
Bank of America Private Bank’s report was based on marketing research company Escalent’s study of 1,431 high-net-worth U.S. adults from January 8 through February 5.
