Sixty-one percent of adult children from affluent American families say they have experienced negative fallout from an inheritance—including hurt feelings, fairness disputes, estrangement, and legal battles—compared with just 29% of their Baby Boomer parents, according to Wells Fargo Wealth & Investment Management's 2026 Wealth Transfer Study.
The findings, drawn from surveys of more than 800 Boomer parents and nearly 800 adult children (Gen X and Millennials) from households with at least $1 million in investable assets, point to a persistent and costly communication failure at the heart of estate planning. The study's participating families averaged $3.7 million in investable assets.
The data arrives as advisors brace for the full force of the Great Wealth Transfer, with Cerulli Associates projecting approximately $124 trillion in wealth will change hands through 2048.
The conversation gap
Parents and adult children broadly agree that inheritance discussions matter. More than eight in 10 adult children (82%) say such conversations would help them plan for the future. Eighty percent of parents believe money talks help younger generations make better financial decisions.
But the follow-through falls short. Only 21% of parents report having detailed conversations about their estate plans with their children, and nearly one-third have had little or no meaningful discussion at all. More than half of adult children (57%) say they wish their families were more open about money, while 42% describe finances as a topic that is routinely avoided.
The reluctance cuts both ways. Sixty-one percent of adult children say they worry that asking about an inheritance will make them appear motivated by money, and 53% say they would feel uncomfortable raising the subject at all. Parents, meanwhile, wrestle with how much to disclose (32%), whether transparency will demotivate their children (25%), or inadvertently cultivate a sense of entitlement (22%).
"Families find themselves in a stalemate," said Heather Hunt-Ruddy, Central Divisional leader at Wells Fargo Advisors. "The next generation doesn't want to appear greedy. Parents don't want to send the wrong message. The result is that important conversations get postponed indefinitely."
What the documents don't say
Nearly all parents surveyed (93%) report knowing how much wealth they intend to pass on, and 79% have specified that amount in a written financial plan. But only 54% of adult children say they have been told what they are likely to inherit.
While 81% of parents say all necessary estate planning documents are in place, only 66% of adult children believe that is true. And even among parents who have completed their documentation, 44% acknowledge they do not fully understand what their own estate plan does.
More than one in five adult children do not know whether they have been named as an executor or trustee (22%) or granted power of attorney for health care or financial matters (22%).
Lorne Maltenfort, national director of Private Wealth Planning at Wells Fargo Wealth & Investment Management, pointed to the limits of paperwork alone. "The challenge facing many families isn't a lack of planning," he said. "It's a lack of shared understanding and alignment. Documents alone don't create preparedness. Successful wealth transfer also requires context, communication, and clarity around roles and responsibilities."
The pattern holds particular significance for advisors. Hybrid investors show 67% higher defection risk, and research has found that 18% of investors are likely to switch advisors when inheriting between $500,000 and $1 million, a figure that rises to 24% for those inheriting $1 million or more.
The family business blind spot
The disconnect between generations is sharpest in families with an operating business. While 67% of business owners' adult children expect the family enterprise to be passed on to them or their siblings, fewer than one in five business owners (19%) actually plan to transfer ownership that way. Many instead anticipate selling to an outside buyer (24%) or gradually winding the business down (36%)—a 48-percentage-point gap between expectation and intention.
"Many children assume they're preparing to inherit a business," Maltenfort said. "Many parents have entirely different plans. Neither perspective is necessarily wrong, but surprise is not a good succession strategy."
An opening for advisors
The study identifies a clear role for financial professionals that is currently going unfilled. More than eight in 10 adult children (84%) say meeting with their parents' financial advisor would help them feel more prepared for an eventual transfer. And 83% say they would feel more confident if that same advisor continued to serve them after their parents are gone.
However, only about one-third of parents (34%) say their advisor has met with their adult children at all, and just 14% say those meetings happen on a regular basis.
Advisors who proactively initiate estate conversations—rather than waiting for clients to raise the subject—are better positioned to retain assets across generational transitions. This aligns with findings that advisors who showcase advanced credentials win more referrals, suggesting that proactive engagement and demonstrated expertise can strengthen client relationships.
Hunt-Ruddy framed the advisor's role in straightforward terms: "The next generation doesn't just want information. They want involvement. Families can benefit when advisors help create opportunities for meaningful conversations before wealth changes hands."
