BNY Wealth Report Finds Over Half of Ultra-Wealthy Lack Transfer Plans

Wealth Transfer Readiness Among the Ultra-Wealthy

The global financial sector is bracing for an intergenerational wealth shift, yet many of the individuals at the center of this transition remain under-prepared. According to a 43-page Wealth In Motion report from BNY Wealth, nearly 53 per cent of ultra-high-net-worth (UHNW) individuals—defined as those with at least $10 million in investable assets—admit that their transfer plans are not yet complete. Only 47 per cent of the 501 respondents surveyed reported having comprehensive plans in place. The demographic breakdown of these respondents showed that 78 per cent were male and the rest were female, with the single largest age segment being 35 to 44 years, accounting for 33 per cent of the total.

The stakes are substantial. A December 2024 analysis by Cerulli Associates projects that total wealth transfers through 2048 will reach $124 trillion. Of that sum, $105 trillion is expected to flow to heirs, while $18 trillion is earmarked for charity. The majority of this capital—nearly $100 trillion—will originate from “Baby Boomers” and older generations, accounting for 81 per cent of all activity. More than 50 per cent of the overall total volume of transfers ($62 trillion) is expected to come from those who are currently HNW and UHNW, a group that makes up only 2 per cent of all households.

Common Planning Mistakes and Structural Hurdles

At the 60th Annual Heckerling Institute on Estate Planning, BNY Wealth presented data from a survey of trust and estate planning experts regarding their clients’ top mistakes heading into 2026. Experts highlighted that the primary barriers to effective planning are rarely a lack of interest, but rather the inherent complexity of the process.

“The most commonly cited issues point less to a lack of engagement than to the complexity of wealth transfer planning itself. Specifically, 39 per cent said the families they advise may not be fully aware of or fully understand their estate plans, while 26 per cent cited asset titling issues and another 19 per cent pointed to outdated documents as common mistakes,” the report stated.

The survey data underscores a significant gap in plan maintenance: more than half of those surveyed have not reviewed their plans with an advisor in the past year, and 24 per cent have allowed their documentation to go unupdated for at least three years. This inertia persists despite the fact that two-thirds of families currently utilize at least one trust, with the average number of trusts being almost three.

Discrepancy Between Confidence and Completion

The report includes a breakdown of current transfer plan elements: 71 per cent of respondents have a healthcare directive/living will; 69 per cent have a will; 63 per cent have a durable financial power of attorney; 50 per cent have set up a revocable trust; 44 per cent are coordinating assets, such as assigning titles or providing funding; 43 per cent have an irrevocable trust; 37 per cent have consolidated their finances; 36 per cent have charitable vehicles; and 31 per cent have set out a business succession plan.

Despite the high percentage of incomplete plans, the report notes a paradox in client sentiment. Approximately 67 per cent of wealthy individuals report high levels of confidence in their plan’s ability to meet their objectives. The report noted that this confidence appears to stem from several factors, including the belief that their plans are well structured, trust in the advisors helping guide the process, and a sense that their planning is aligned with both current needs and long-term goals.

As the industry faces a period of significant M&A activity, firms are seeking scale and resources to handle the increasingly complicated demands of clients undergoing this transfer process.

Sources: Wealthbriefing, familywealthreport.com.