Baby boomers and older generations are expected to pass roughly $124 trillion to heirs and charities through 2048, according to Cerulli Associates. About $18 trillion of that total is projected to go to charity. This shift, widely known as the Great Wealth Transfer, is already underway. For families interested in multi-generational giving, the coming years may offer an opportunity to move from accumulating capital toward the intentional stewardship of a family legacy.

Cerulli estimates that heirs already receive about $2.5 trillion each year, a figure that is expected to exceed $3 trillion annually by 2030. Thoughtful wealth transfer strategies can help families decide how much of that capital supports the next generation and how much supports the causes they care about most.

As wealth transitions across generations, it naturally prompts a fundamental shift in perspective. While the founding generation often concentrates on the discipline of accumulating assets, subsequent generations are tasked with stewarding that capital for meaningful, long-term impact. Navigating this transition typically leads families to weigh two distinct paths, balancing individual autonomy with shared collaboration.

While individuation gives heirs the freedom to explore their own passions, collaboration invites the family to rally around a collective mission. In practice, most families discover that blending both approaches creates the greatest long-term harmony. Establishing a deliberate, unifying strategy not only eases generational friction and optimizes tax efficiency, but also safeguards the founder’s original philanthropic intent, ensuring the transfer of wealth deepens family bonds rather than straining them over time.

Families seeking to give together often find success with a hybrid model. This structure pairs a central legacy foundation with satellite funds. The foundation anchors the family’s collective mission, and the satellite funds give younger members the agency to support causes aligned with their own passions. Over time, this arrangement can help multi-generational giving to evolve as each generation brings new interests to the table.

Choosing the Right Charitable Vehicles

Selecting appropriate vehicles involves a careful look at each family member’s goals, time commitment, and appetite for administration. Popular options among charitable giving strategies include:

• • Private Foundations: A private foundation offers a structured setting for collaborative governance and direct control over grantmaking. It can also serve as a training ground for the next generation, though foundations carry higher administrative requirements and generally must distribute about 5% of their net investment assets each year under Internal Revenue Code Section 4942.
• • Donor-Advised Funds (DAFs): DAFs offer simplicity and privacy. Starting a DAF may suit individual family members who value ease of use. However, it is important to note that contributions are irrevocable, and the sponsoring organization holds legal control of the assets while donors retain advisory privileges.
• • Charitable Remainder Trusts: A charitable remainder trust can provide an income stream to noncharitable beneficiaries for life or a term of up to 20 years, with the remaining assets passing to charity. These trusts require careful legal drafting to align with specific financial and philanthropic objectives.

Coordinating Wealth Transfer Strategies Across Generations

The vehicles a family chooses may work more effectively when coordinated with the rest of the financial plan. Two areas may warrant particular attention.

Timing Gifts in a New Tax Environment

Under the One Big Beautiful Bill Act, itemizers can deduct charitable contributions only to the extent they exceed 0.5% of adjusted gross income, beginning in 2026. For families who give regularly, bunching charitable donations into a single year through a DAF may help clear that floor while grants continue to reach charities over several years.

Bringing the Next Generation to the Table

When coordinated effectively, these tools can turn the wealth transfer into a practical learning opportunity. Younger family members can sit in on grant decisions, research nonprofits, or manage a small satellite fund before taking on larger responsibilities.

This hands-on experience may help build confidence in financial oversight and governance. Paired with a thoughtful approach to strategic philanthropy, multi-generational giving can become a shared family tradition.

Disclaimer

5280 Associates is an SEC registered investment adviser.  SEC registration does not constitute an endorsement of 5280 Associates by the SEC nor does it indicate that 5280 Associates has attained a particular level of skill or ability. Facts presented have been obtained from sources believed to be reliable. 5280 Associates, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 5280 Associates does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.