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Are you prepared for ‘The Great Wealth Transfer’?
More wealth than ever before is expected to be passed down from the oldest generations over the next 30 years, known as 'The Great Wealth Transfer'. Whether you’re handing down or inheriting assets, here are some things to bear in mind.

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More wealth than ever before is set to be passed from the oldest generations to younger ones in the coming years. This has been dubbed ‘The Great Wealth Transfer’. We explore how you can plan for this and what you might want to keep in mind – whether you’re inheriting assets or handing them down.
Who's passing on wealth?
In the UK, more than £5 trillion worth of assets is expected to change hands over the next 30 years.
Much of it will be coming from Baby Boomers (those currently aged around 60-80), who are thought to be the richest generation. And some wealth will come from the Silent Generation (those over 80).
If you’re likely to be passing on wealth or receiving it, here are three things you can do to help prepare.
1. Understand what is and isn’t covered by a Will
A Will is a document a person can use to say who they’d like their property, belongings and money (their ‘estate’) to go to when they die.
Not sure what you need to think about when writing your Will? You can visit GOV.UK for more information. Wills are really important for helping the right people inherit your wealth. If you don’t have a Will in place, your estate needs to be shared out under specific rules. This is called 'intestacy' and your assets might not go to the people you wanted them to go to.
If you’ve been written into someone’s Will, their executor needs to tell you what you’re entitled to. The executor is the person who carries out the instructions in a Will.
Be aware: pension plans aren’t usually covered by your Will because pensions aren’t currently considered part of your estate. So it’s important to let your pension provider know which people or charities you want your pension savings to go to when you die (your ‘beneficiaries’). Although your provider isn’t bound by your wishes, they’ll take them into account.
If you’ve been named as a beneficiary on someone’s pension plan, that means they want to pass some or all of their pension savings to you.
Even if you don’t expect to pass on your wealth for a while, it’s worth considering writing a Will and naming your pension beneficiaries (if you have that option).
You may be able to name your pension beneficiaries online, on your provider’s app, or by filling out a form. If you’re a Standard Life customer, you can find out more about our online services on our website. It’s important to review your beneficiaries regularly and let your provider know if they’ve changed.
2. Know what taxes might need to be paid
Whether you’re leaving wealth or inheriting it, it’s good to understand what taxes may be owed, as this can impact the amount that can be passed down. So here are some taxes that could apply.
Inheritance tax
Inheritance Tax (IHT) might need to be paid when someone dies – but only if their estate is worth more than the ‘nil rate band’, which is £325,000 for most people. Or if the person is giving their home to their children or grandchildren, there will usually be zero inheritance tax to pay unless the estate is worth over £500,000. A spouse or civil partner can inherit any unused nil rate band, so couples may have up to £1 million when the last person dies.
Are you passing down wealth and feeling concerned about the IHT that might apply? There may be things you can do to help your loved ones keep more of your wealth. For example, you could reduce the overall value of your estate (and therefore reduce the IHT bill) by making gifts to your loved ones while you’re alive. There are rules around gifting – you can get familiar with them on MoneyHelper. There are other things you could consider to potentially reduce future IHT bills, like setting up a trust or leaving money to charity.
What if you’re the one receiving wealth? It’s important to know how much IHT might be owed. 40% tax will usually need to be paid on the amount that exceeds the £325,000 threshold (but remember, some people will have a different threshold depending on their circumstances, e.g. £500,000).
The tax will come out of the estate, so it could lower the overall amount that’s passed on to you.
In most cases, pension plans don’t count as part of a person’s estate and aren’t subject to IHT. But from April 2027, the government have announced their intention to include unused pension savings when calculating the value of estates, meaning pension savings could be subject to IHT. The full details of how this will work are still to be confirmed by the government.
Capital Gains Tax and income tax
There are other taxes that need to be paid after a death.
For example, Capital Gains Tax (CGT) may be owed. Let’s say a loved one dies, you inherit their property, then sell it during ‘probate’ – the period during which their estate is being dealt with. If that property has increased in value since the owner’s death, CGT may be owed on the profit.
Or say someone has interest from a savings account paid to them throughout the year. Interest can be subject to income tax. So if the person dies, the executors will need to pay this on their behalf from the estate.
You can learn more about these taxes on MoneyHelper.
3. Talk to each other – and consider getting advice
Death and inheritance can be sensitive, emotional subjects. But open conversations can be really important when it comes to wealth changing hands. It can help make sure everyone’s on the same page about where assets are going – meaning everyone involved can then plan accordingly.
Deciding how to pass on your wealth is a big decision, so you may want to consider getting financial advice from a financial adviser. You can get more information about getting financial advice on MoneyHelper.
If you are inheriting money, there are various things you can do to potentially help it work harder for you. You could consider putting some money in a pension plan, for example, to save for your long-term future. Or you might decide to put your money in other savings or investment accounts, like Individual Savings Accounts (ISAs).
You might benefit from financial advice if you’re inheriting money or other assets. An adviser may be able to help you decide what to do with the assets you’ve received.
The information here is based on our understanding in May 2025 and shouldn’t be taken as financial advice.
A pension is an investment. Its value can go down as well as up and could be worth less than was paid in.
Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.