Why wealthy delay handing heirs access to wealth

Wealthy families are increasingly delaying or restricting access to assets for heirs because they doubt the next generation’s readiness, a BNY Wealth report found. The findings come from a spring 2026 survey of 501 U.S. individuals with at least $10 million in investable assets. Forty-six percent of respondents impose minimum age thresholds and 43% require trustee or advisor sign-off before heirs can access funds.

The report shows families commonly set formal conditions on transfers as part of succession planning. One-third of respondents require heirs to complete education or training before receiving assets. Families involve an average of 2.5 advisors in planning. About two-thirds of those advisors are wealth management professionals or trust and estate attorneys. More than half of families use tax advisors or CPAs, while 19% engage a family office manager or CEO and another 19% work with a business succession specialist. The report says family dynamics, administrative requirements, long-term objectives, tax strategies and possible regulatory changes increase the number of professionals involved.

Respondents identified specific signs that an heir is ready to manage wealth. Sixty-six percent pointed to heirs managing their own finances responsibly, 60% cited prior discussions about financial expectations, and 53% noted strong financial literacy. Fifty-one percent credited the support of financial professionals, and 38% mentioned formal money management education. The report states, “Feeling confident in an heir’s ability to manage future responsibilities often starts with trust in their judgment and decision-making. Many families also see an important role for trusted financial professionals, with more than half of those who feel confident in their heirs saying that professional guidance helps provide added structure and perspective over time.”

Timing of transfers is another key concern. Forty-five percent of respondents listed family dynamics as a primary factor in deciding when to move assets, and 44% cited tax or regulatory changes. Long-term care and longevity planning influenced timing for 42% of respondents, while 30% pointed to market volatility and 25% to inflation. Illiquid assets such as real estate or privately held businesses were identified as likely to delay transfers because they often require planning for a sale or partial business transition.

The survey outlines a phased pattern of wealth movement. Owners plan to transfer, on average, 17% of their wealth in the next five years, 18% over six to ten years, 21% over 11 to 20 years and another 21% more than 20 years out. Respondents expect to pass 55% of assets at death or afterward, indicating that gifts, trusts and staged transfers are common. An industry estimate projects roughly $124 trillion could move to younger investors by 2048; the BNY Wealth report says the transition has been slower and more complex than expected, in part because ultrahigh-net-worth individuals are living longer and family decision windows have extended.

To address communication and readiness gaps, the report recommends starting wealth transfer conversations well before transfers begin, establishing formal family governance, prioritizing education for the next generation, including multiple generations in discussions, defining family values and goals, and using wealth advisors to structure transfers and oversight.