What is the Great Wealth Transfer, and will you be ready?

Over the next 25 years, New Zealand will undergo the largest intergenerational shift of assets in its history. Dubbed the Great Wealth Transfer, this shift is expected to see between $1 trillion and $1.6 trillion in assets, mostly property, pass from baby boomers to their children and grandchildren.

But while the numbers are staggering, most New Zealanders aren’t ready. Without proper planning, this transition could create more problems than prosperity for families, communities, and future generations.

What is the Great Wealth Transfer?

The Great Wealth Transfer refers to the massive shift in personal and family wealth from one generation to the next, triggered by New Zealand’s aging population and decades of property value growth.

Key facts:

Inheritances are projected to grow from $27 billion in 2024 to $1.6 trillion by 2050
Baby boomers make up 23% of the population but own more than 50% of the country’s wealth
Much of this wealth is tied up in residential property, with 1.6 million homes owned by Kiwis over 50
Many inheritors won’t receive wealth until they’re in their 60s, well past their most financially stressful years

Why this matters for families and for New Zealand

While New Zealand ranks highly for household wealth, the gap between generations is growing. Younger New Zealanders are locked out of the housing market, struggling with slow wage growth and rising living costs. Meanwhile, older generations hold significant assets but haven’t always planned for how those assets will be passed on.

Only 55% of New Zealand adults have a will. Just 1.3% of inheritances go to charity. Many families avoid talking about money until it’s too late, leading to confusion, conflict, and lost opportunity.

We see too many families come to us after conflict has already begun. A well-structured plan can prevent years of heartache.

The risks of doing nothing

If families don’t plan ahead, the wealth transfer can quickly become a source of stress or even litigation. Here are the key risks:

No will, no control: Without a will, your estate is distributed according to legislation, not your wishes.
Family disputes: Inheritance-related disputes are rising in New Zealand, often tearing families apart.
Wealth that doesn’t last: Studies show 70% of wealth is lost by the second generation, and 90% by the third.
Lack of financial literacy: Many heirs are unprepared to manage large sums of money or property.
Over-reliance on property: Estates tied up in property can leave beneficiaries with limited liquidity and tax headaches.

How to get ready

Preparing for the Great Wealth Transfer isn’t just about legal documents, it’s about values, education, and communication. Here’s where to start:

Start the conversation early – Talk with your family about what matters, what you’re planning, and why.
Get a will and update it regularly – Major life changes? Your will should reflect them.
Use trusts and enduring powers of attorney – Protect vulnerable beneficiaries and ensure continuity.
Talk to a professional – A lawyer or financial adviser can help you make smart, legally sound decisions.
Invest in financial education for your kids – The best inheritance is knowledge.
Define your legacy – Don’t just think about money, think about the impact you want to make.

Our perspective at Grayson Clements

At Grayson Clements, we guide families through the complexity of intergenerational planning. Whether you’re passing on a family business, property portfolio, or a more modest estate, we help ensure that your wealth serves its intended purpose: supporting the next generation while protecting the relationships that matter most.

We specialise in:

Trusts and estate planning
Business and asset succession
Family governance and legacy planning
Cross-border asset structuring
Advice for individuals, family offices, and farming families

A moment of opportunity

The Great Wealth Transfer is already underway. For some, it will be a defining moment of intergenerational success and legacy. For others, it could trigger conflict and financial strain.

With the right planning, New Zealand has the chance to turn this historic transfer into a force for good, strengthening families, supporting communities, and narrowing the generational wealth gap.

Don’t wait for the unexpected.
Start the conversation now. And if you need help, we’re here.