
Women around the world are setting new boundaries in wealth management and philanthropy. By controlling increasingly more significant sums of money, women are making major shifts in the financial world.
According to Bloomberg Law, a massive wealth transfer will give women a total of $34 Trillion by the year 2030. For reference: "In the US alone, McKinsey & Co. expects women to control $34 trillion — or roughly 38% — of investable assets by 2030, close to double last year's total. The figure was just $7.3 trillion, or 29%, 10 years ago."
The "massive" wealth transfer to women can be attributed to "a simple demographic trend," as Bloomberg Law explains it: "Women of the Baby Boomer Generation outlive men by five years on average, and rich husbands are increasingly leaving their wives in control of family fortunes."
Forbes also points out that "Millennial and Gen X women reportedly approach wealth differently than their mothers and grandmothers. They're more likely to be actively involved in financial decisions and to seek purpose-driven investments."
Let's dive into what you need to know about the massive wealth transfer to women.
How to Prepare for the Massive Wealth Transfer to Women
When it comes to wealth transfer to women, educating yourself is one the most important steps you can take. Whether you are on the giving or receiving side of wealth transfer, there are many considerations.
Here are some ways that both sides of the wealth transfer to women can help make for an easier transition:
For Those on the Giving Side of the Wealth Transfer to Women
Give Without Worry
Passing on your wealth is an expression of love, and careful planning helps it reach your loved ones in the way you intend. By taking advantage of gift tax exclusions, you can make a difference now without unnecessary tax burdens for you or your heirs.
Preserve a Lifetime's Work
You have worked hard to build what you have—whether it is a business, property, or investments. Tools like trusts or charitable contributions can help you protect that legacy and help your life's work continue to provide for those you care about.
Make Your Giving Intentional
Transferring wealth is more than a financial decision; it is a chance to align your giving with your values. Charitable donations, donor-advised funds, or strategic planning for your family can amplify the impact of your generosity.
Leave a Lasting Legacy
Creating a trust or plan for your wealth is not just about reducing taxes—it is about creating a foundation for your family's future. A thoughtfully executed plan helps that what you pass on to not just be wealth but security, stability, and hope.
For Those on the Receiving Side of the Wealth Transfer to Women
Protect the Gift You've Been Entrusted With
Receiving an inheritance is often deeply emotional—it is a final act of love from someone who cared for you. By understanding taxes like inheritance or estate taxes, you can protect that gift and honor their intentions by using it wisely.
Preserve What Matters Most
Assets like family homes or investments carry not only financial value but also memories and stories. Utilizing step-up in basis rules can help you minimize taxes when selling inherited assets, preserving more of their worth for your future.
Secure Your Peace of Mind
Inheriting wealth can feel overwhelming. By working with an estate planner or advisor, you can build confidence in your financial decisions and know that you're managing this gift in a way that reflects your values and priorities.
Plan for Your Own Legacy
An inheritance is often a reminder of your own role in shaping the future. Use this opportunity to establish or update your own estate plan to pass along your values alongside you
JTM and the Massive Wealth Transfer to Women
At JTM Williams Capital Management, we understand that wealth transfer to women is more than a financial event—it's an emotional journey that carries the love and dreams of generations.
By honoring the intent behind the wealth, you can focus on its true purpose: providing security and opportunity for what matters most. Navigating the complexities of wealth transfer together through open and honest conversations with loved ones strengthens family bonds and fosters understanding.
While tax laws may seem daunting, empowering yourself with the proper knowledge helps you protect what you've been given and pass on even more.
With thoughtful planning and professional guidance, your wealth can create a legacy that truly lasts. Contact us today to learn more.
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