Everyone Cites Cerulli. Here’s What the Data Actually Says

Speakers

• Chayce Horton, Associate Director, Cerulli Associates

• Amy Danforth, Board of Directors, Ren

The Great Wealth Transfer is often framed as an inheritance story. But what if one of its greatest impacts isn’t simply who inherits the wealth, but what the wealth ultimately makes possible? This session at the DAF Giving Summit offered a compelling perspective on the extraordinary opportunity this historic transfer of wealth could create for philanthropy.

Chayce Horton shared research showing that an estimated $124 trillion will pass to heirs and charities over the next 25 years. Several forces are converging to drive that transfer, including extraordinary wealth creation, increasing concentration of wealth among high-net-worth households and an aging population of wealth holders.

Those trends have significant implications for charitable giving.

Cerulli’s research found that giving at death rises considerably with wealth. Charitable contributions represent approximately 4% of estates below $10 million, increasing to 24% for estates of $50 million or more. And annual wealth transfers to philanthropic organizations are projected to grow from approximately $432 billion in 2025 to $993 billion by 2045.

Who will control the wealth?

While much of the conversation around wealth transfer focuses on Millennials, the session highlighted two groups that deserve particular attention: Baby Boomer women and Generation X.

Before wealth moves between generations, substantial assets will first transfer within households, often to surviving spouses. For Baby Boomer women, Cerulli’s research shows that financial security remains the top priority, but legacy and charitable giving also rank among their important long-term financial goals.

Gen X presents a different challenge. Often described as the “sandwich generation,” they may simultaneously be supporting children, caring for aging parents and preparing for their own retirement.

For advisors, that may mean approaching philanthropy differently. Instead of beginning with a charitable vehicle or tax strategy, the conversation can begin with a much simpler question:

What matters most to you?

Understanding a family’s values and priorities can create a natural path to conversations about legacy and charitable impact.

The advisor opportunity

Cerulli’s research also revealed an important relationship gap. Among high-net-worth practices, 90% have established relationships with or actively involve clients’ spouses in planning. With clients’ children, that number falls to just 53%.

That matters because heirs often establish their own advisory relationships before receiving inherited wealth. Waiting until wealth transfer is imminent may be too late.

Encouragingly, wealth management is already evolving. From 2017 to 2025, the percentage of high-net-worth practices offering charitable and philanthropic planning increased from 70% to 83%. Family counseling and planning, foundation management, and trust administration services have also expanded.

The shift reflects a broader movement from managing portfolios to helping families navigate increasingly complex financial lives.

From how much to what asset

There is another important opportunity: helping clients think beyond cash.

Significant wealth has been created through appreciated securities, concentrated stock positions, privately held businesses and other non-cash assets. Incorporating these assets into charitable planning can bring investment, tax, estate and philanthropic conversations together. One of the most popular charitable giving vehicles is a donor-advised fund (DAF). DAFs can simplify the giving process for donors while, in many cases, providing the flexibility to contribute a wide range of assets, including non-cash and complex assets. 

It also changes the question from simply “How much should I give?” to “What is the most effective asset to give?”

Long-term projections will inevitably be influenced by markets, tax policy and donor behavior. But the demographic shift is already underway. The Great Wealth Transfer isn’t only about who ultimately receives the money. It’s an opportunity to help families decide what they want that wealth to accomplish.