By Jeffrey Ott, Author and Independent Columnist
Over the next two decades, the United States will experience the largest intergenerational transfer of wealth ever measured. As the baby boomer generation ages, economists estimate that more than $80 trillion—and possibly well over $100 trillion—will move from older Americans to younger generations and charities.
This shift, currently being referred to as the Great Wealth Transfer, represents a financial event unlike anything in modern history.
For most families, inheritance planning has traditionally focused on two beneficiaries: family and government. Wealth accumulated over a lifetime is passed to children and grandchildren, while taxes claim their share through estate taxes, income taxes, and capital gains.
But as this historic transfer unfolds, a growing number of people are beginning to ask a different question: What if there were a third beneficiary?
The Third Beneficiary concept represents the portion of wealth intentionally directed toward purposeful philanthropy—toward strengthening communities, solving real problems, and investing in the future of society itself.
In this framework, wealth ultimately serves three destinations:
- Family- Supporting children and future generations
- Government- Taxes required by law 3.
- Society- The Third Beneficiary, representing strategic philanthropy that improves the world.
The scale of the coming wealth transfer makes this idea particularly powerful. Baby boomers—those born between 1946 and 1964—are the wealthiest generation in American history. Decades of economic growth, rising home values, and long-term stock market expansion have allowed many to accumulate substantial assets.
Researchers estimate that roughly $84 trillion will transfer between generations by 2045, with some projections exceeding $120 trillion by 2048. Even modest philanthropic commitments from that pool of wealth could unlock trillions of dollars for addressing challenges in education, health research, environmental stewardship, and poverty reduction.
In other words, the Great Wealth Transfer is not simply an economic event. It is also a generational moment of choice.
Families must decide not only how much wealth they will pass on, but what values they will pass along with it.
Many people who built successful lives feel a natural desire to give back. Yet traditional estate planning often treats philanthropy as an afterthought rather than a central component of legacy.
The idea of the Third Beneficiary changes that perspective. It clarifies and reinforces the concept that Philanthropy is the third leg of the stool supporting wealth transfer.
Instead of viewing wealth solely as something to preserve within a family, it reframes success as an opportunity to move resources forward with purpose—to support the next generation while also strengthening the communities and institutions that made that success possible.
If even a small portion of the Great Wealth Transfer is directed intentionally toward solving real societal problems, the impact could be extraordinary.
The question facing the baby boomer generation is therefore not simply how wealth will be transferred. It is what legacy that wealth will leave behind.
References
Cerulli Associates. The Cerulli Report: U.S. High-Net-Worth and Ultra-High-Net-Worth Markets. Estimates that approximately $84 trillion will transfer between generations by 2045.
Cerulli Associates. U.S. Wealth Transfer Forecast 2024–2048. Projects that up to $124 trillion could transfer across generations by 2048.
Federal Reserve. Distribution of Household Wealth in the United States. Data showing the large share of wealth held by the baby boomer generation.
Bank of America Private Bank. Insights on the Great Wealth Transfer.
UBS. Global Wealth Report. Analysis of global wealth accumulation and inheritance trends.
McKinsey & Company. The $80 Trillion Wealth Transfer and Its Implications for Financial Institutions.
Boston College Center for Retirement Research. How Much Will Baby Boomers Leave to Their Children?
The Philanthropy Roundtable. The Future of American Philanthropy.
Fidelity Investments. The Generational Wealth Transfer Study.
Investopedia. The Largest Wealth Transfer in History Explained.
Williams, Roy & Vic Preisser. Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values.
Giving USA Foundation. Giving USA Annual Report on Philanthropy.
U.S. Census Bureau. Wealth and Asset Ownership Data.
National Philanthropic Trust. Donor-Advised Fund Report.