A Big Inheritance May Not be All Financial

Welcome to the Great Wealth Transfer! This much-cited era, happening right now, is reportedly the time when trillions of dollars will pass from one generation to the next over the coming decades in various forms, ranging from cash and stock to real estate and business interests.

Understandably, most conversations and commentary about this transfer focus on the assets themselves. Who will inherit the family business? What will happen to the investment portfolio? How should the estate plan be structured? Naturally, those are important questions! But many families are beginning to ask something deeper: “What values do we want to pass along, too?”

A recent Kiplinger article exploring the Great Wealth Transfer makes the point that the strongest family legacies are built not simply by transferring assets, but by intentionally passing along values of generosity through shared charitable experiences and conversations. It encourages families to involve younger generations in philanthropy early, making giving a collaborative, multigenerational experience rather than a one-time financial transaction.

For many people, philanthropy is one of those values. If you’re among them, here’s food for thought:

• A charitable legacy isn’t simply about the gifts that are made after you’re gone. It’s also about helping your children and grandchildren understand why giving has been important throughout your life. In many ways, the conversations, traditions and shared decisions surrounding philanthropy can become just as meaningful as the financial inheritance itself.
• Now is a great time to begin mapping out your legacy if you’ve not done so already. For starters, August is widely recognized as Make-A-Will Month, in large part because the downtime of late summer offers a perfect window to address open estate planning issues.
• According to the latest Giving USA report, charitable bequests totaled more than $62 billion in 2025, increasing nearly 20% over the previous year. Bequests were the fastest-growing source of charitable giving, underscoring how important estate gifts have become to nonprofit organizations and the communities they serve.
• A charitable bequest can be surprisingly simple. You might leave a specific dollar amount or a percentage of your estate to your donor-advised fund or designate another type of charitable fund at IPCF to continue supporting the organizations and community priorities that matter most to you.
• For example, by naming your children or other loved ones as successor advisors of your donor-advised fund at IPCF, you’re inviting them to continue the family’s tradition of generosity by recommending grants to the organizations and causes they believe will make a difference. This opportunity is itself a meaningful inheritance!
• For individuals and couples with especially large estates, charitable planning also may reduce the federal estate tax ultimately borne by the estate, helping preserve more of the remaining assets for heirs. This consideration applies to relatively few families because the federal estate tax exemption is $15 million per individual in 2026, but when it does apply, it really matters because gifts and bequests to qualified charities generally are deductible in determining the taxable estate. Your attorney, CPA and financial advisor can help determine whether estate tax planning is relevant to your particular circumstances.
• Even when estate taxes are not a concern, a charitable bequest can still become one of the most meaningful gifts you make. You may, of course, provide for family members while also supporting the causes and organizations that have mattered throughout your life.

Estate plans are designed to transfer wealth. A charitable legacy has the power to transfer something even more lasting. IPCF would be honored to work with you and your estate planning advisors to arrange charitable bequests, establish a donor-advised or other charitable fund and build a legacy your family can continue long into the future.

This article is provided for informational purposes only. It is not intended as legal, accounting or financial planning advice.