What are the main tax implications of inheriting wealth?

While inheritance tax (IHT) is paid by the estate before assets are distributed, the inheritance you receive is generally not subject to further tax at the point of receipt. However, it's crucial to consider future tax implications. For instance, if you inherit an asset like property or shares and later sell it for a profit, you may be liable for capital gains tax (CGT). Integrating the new assets into your own financial plan and understanding their tax status is a vital step.

Is it better to pass on wealth as gifts during my lifetime or as an inheritance?

This depends entirely on your personal and financial circumstances. Gifting during your lifetime allows you to see your loved ones benefit from your support and can be a tax-efficient way to reduce the size of your estate for inheritance tax (IHT) purposes, provided you survive for seven years after making the gift. However, you must ensure you do not give away assets you might need later. Leaving wealth as an inheritance provides you with financial security for your entire life, but may result in a larger IHT bill for your estate. A financial adviser can help you find the right balance between these two approaches.

What other challenges come with inheriting assets like property or a family business?

Inheriting non-cash assets brings unique responsibilities. With property, you immediately take on costs and duties such as insurance, maintenance, potential mortgage payments, and decisions about whether to sell, rent it out, or live in it. Inheriting a family business is even more complex, involving responsibilities to employees, operational continuity, and potentially navigating a succession plan. These assets require active management and a different kind of planning compared to a straightforward cash inheritance.

I'm expecting an inheritance. What's the biggest mistake to avoid?

One of the most common mistakes is making rash, emotional financial decisions immediately after receiving the funds. It can be tempting to make large purchases, quit your job, or invest in high-risk ventures straight away. A more prudent approach is to take your time. Deposit the money into a secure, accessible savings account, allow yourself time to process the change, and avoid making any irreversible decisions. Use this period to consult with a financial adviser who can help you create a long-term plan that aligns the inheritance with your personal life goals.

What is the great wealth transfer? How £7 trillion is changing hands

4 mins read

by Unbiased Editorial Team

Last updated Dec 22, 2025

Discover how the £7 trillion great wealth transfer affects you. Learn how to plan, protect, and prepare for inheritance across generations in the UK.

Over the next 30 years, an estimated £5.5 to £7 trillion will pass from one generation to the next in the UK.

It’s being called the great wealth transfer, the biggest financial shift in history, and it’s already happening.

Whether you’re planning to pass on wealth or expecting to receive it, understanding what this means for you and your loved ones is essential.

We explore what this means for you using the latest data, research and statistics.

Key takeaways

The great wealth transfer refers to the enormous movement of money, property, and assets between generations.

You can take practical steps to make the most of the great wealth transfer.

Female financial advice seekers are 45% more likely than men to have an inheritance as part of their overall asset wealth.

Financial advice can be helpful for both long and short-term goals, as it’s tailored to your unique circumstances.

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What is the great wealth transfer?

The great wealth transfer refers to the enormous movement of money, property, and assets between generations, typically from baby boomers (born 1946–1964) to Generation X (1965–1980) and millennials (1981–1996).

In 2020, baby boomers controlled over half (52.5%) of the UK’s total wealth, about £5.1 trillion. As they age, this wealth will move to younger generations through inheritance, gifts, and estate transfers.

But this isn’t just something for the future, it’s already underway. Inheritances currently total more than £100 billion each year, and this number is rising.

What the great wealth transfer means for your generation

Using the latest data from Unbiased, here are the key things you need to know about the next wealth holders and sharers.

Baby boomers: planning a legacy

Many are financially comfortable, with 11% holding assets worth over £1 million.

Most commonly seek advice about pensions and retirement.

Feel concerned about the financial struggles their children and grandchildren face.

Tip: If you’re a baby boomer, start the conversation early. Creating a financial plan that includes your family can help reduce anxiety and give you peace of mind that your legacy is secure.

Generation X: caught in the middle

Make up the largest group of financial advice enquiries (29%) through Unbiased.

Often feel overlooked by financial services, despite juggling mortgages, careers, and family responsibilities.

Typically, seek help with retirement and financial planning.

Tip: Even if life feels too busy to think about money, carving out time now can prevent stress later. Consider seeking advice that simplifies your decisions and saves you time.

Millennials: ready to move forward

Despite lower wealth levels (only 3% have assets over £1 million), millennials are open and motivated to improve their financial future.

Top priorities include financial planning, pensions, and investments.

Many feel held back by high living costs, stagnant wages, and delayed life milestones like homeownership.

Tip: The key is to start with achievable goals. Working with a financial adviser can help you build momentum and confidence, even if you’re not wealthy (yet).

How to make the most of the great wealth transfer

Whether you're planning to pass on wealth or expecting to receive it, these practical steps can help you navigate the transition with confidence and clarity.

1. Talk openly with your family

One of the biggest obstacles to smooth wealth transfers is silence.

If you’re passing money down or receiving it, start the conversation early to avoid stress later.

2. Find the right financial advice

Surprisingly, 59% of people seeking advice through Unbiased in 2024 were doing so for the first time. You don’t have to go it alone.

A good adviser can help you plan for the future, whether you're managing an inheritance or building wealth from scratch.

3. Embrace digital tools

For consumers today, across all generations, the financial advice journey starts online, searching, researching, and comparing advisers.

In fact, according to Statista, before buying anything, over half of UK consumers do research on the internet first.

Get financial advice

We’ll find a professional perfectly matched to your needs. Getting started is easy, fast and free.

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The great wealth transfer gender gap: What does the data reveal?

Female financial advice seekers are 45% more likely than men to have an inheritance as part of their overall asset wealth, according to research by Unbiased.

Insights are based on anonymised data from 1,276 UK consumers who used the platform to seek financial advice between 6 May and 27 May 2025.

The survey found that 19% of female advice seekers report an inheritance as part of their asset wealth, compared to 12% of men.

It also revealed that 57% of male advice seekers plan to leave assets to their female partner, compared to 28% of female advice seekers doing the same for a male partner, suggesting the number of female inheritors could rise more.

This insight comes as women are expected to own 60% of UK wealth by the end of this year (Centre for Economics and Business Research).

Why it’s important to prepare for the great wealth transfer now

According to Unqork, up to 80% of people who inherit wealth end up changing advisers. Often, that’s because they don’t have a relationship with the person managing their family’s money.

That’s why families must work together and plan for the future, not just financially, but emotionally and practically too.

Why is financial advice important during the great wealth transfer?

While increasing the number of people who can benefit from assets is positive, many may not understand the best way to manage their new assets and may not have sought advice before coming into their newfound wealth.

Financial advice can be helpful for both long and short-term goals, as it’s tailored to your unique circumstances.

A qualified financial adviser can provide advice on:

Retirement planning
Estate planning

Investments
Optimising and consolidating pensions
Equity release
Buying a property
Selecting the right insurance policies
Reducing your tax liabilities
Accountancy services for your business

While financial advice does incur fees, it should ultimately prove beneficial and offer more value than the initial cost.

Seek expert financial advice

The great wealth transfer is changing the financial future for millions of UK families.

Whether you’re looking to protect your legacy or make smart decisions with new wealth, now is the time to plan ahead.

Unbiased can find a qualified financial adviser tailored to your goals, generation, and circumstances.

Get financial advice

We’ll find a professional perfectly matched to your needs. Getting started is easy, fast and free.

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Frequently asked questions

Author

Unbiased Editorial Team

Our team of expert writers, who have decades of experience writing about personal finance, including investing, retirement and pensions, are here to help you find out what you need to know about life’s biggest financial decisions. The team have written for and featured in publications such as Times Money Mentor, Interactive Investor, MoneyWeek, The Times, Confused.com, Shares Magazine and more.