Giving while living: Bridging the gap in modern wealth transfer
Giving while living is emerging as a powerful way to align wealth with real-time needs. Investors can witness their impact firsthand, while advisors gain a timely opportunity to guide multigenerational planning with greater purpose and clarity.
What began in the philanthropic world—a desire to give with intention during life, not just at death—is now gaining traction in family conversations. Across the wealth spectrum, more investors are asking: Why wait? And more advisors are recognizing that giving while living isn’t just a charitable instinct. It is becoming a meaningful part of modern estate and retirement planning.
New research from the State Street Investment Management Center for Investor Research—Insights Into Early Wealth Transfer—captures both the rising momentum and the tension behind this shift. While nearly one in four investors now say they plan to give during their lifetime,1 many still hesitate due to concerns about financial readiness, tax complexity, and the potential misuse of gifts by recipients. This presents an opportunity for advisors: those who can lead with empathy and structure stand to deepen relationships, retain assets, and unlock long-term generational growth.
Why investors are increasingly giving while living
Giving while living is gaining broader relevance among families as a strategy to strengthen connection, manage control, and align wealth with evolving priorities. For some investors, it’s driven by deeply held values; for others, it’s shaped by pragmatism. Regardless of the motivation, the trend underscores an expanding role for advisors in guiding wealth transfer long before estate execution.
The most common motivations, according to the survey, are deeply emotional and purpose-driven—highlighting the importance of thoughtful, values-based planning.2 The top motivations for giving while living are being able to see receivers enjoy the gift (71%) and helping support their financial needs (61%).
Other motivations include avoiding financial mistakes in later life (27%) and reducing estate taxes (20%).
But other investors hesitate due to concerns
At the same time, a significant portion of investors hesitate to take the next step—whether that means making a financial gift, beginning a formal plan, or openly discussing intentions with family members. Concerns about recipients’ potential misuse of funds (36%), maintaining their own lifestyle (35%), and covering future unexpected expenses (31%) are among the top barriers.3 This emotional and financial hesitation creates a clear opportunity for advisors to turn uncertainty into dialogue and indecision into planning.
Compounding the challenge is a persistent communication gap between givers and recipients. While only one in three givers report having discussed their financial gift or inheritance plans,4 nearly half of recipients assume those conversations have already taken place.5 This perception suggests that vague or informal family discussions are often mistaken for formal planning, increasing the risk of misalignment and unmet expectations over time.
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There’s also a gap among receivers in perceived readiness and practical planning. While almost 60% of recipients say they’re ready to manage wealth,6 less than half have an actual plan in place for managing those funds.7 In addition, less than one-third of recipients say they’re concerned about tax implications even as many givers hesitate to transfer wealth for this reason.8
This confidence gap is mirrored by givers, with only half believing that recipients have the financial knowledge to manage their inheritance responsibly.9 For advisors, it underscores a disconnect between confidence and true preparedness—and presents a window of opportunity to bring clarity, structure, and education to family wealth discussions.
How can you help both givers and receivers?
Early wealth transfer brings financial, emotional, and communication challenges for both givers and recipients. Advisors are well positioned to guide these conversations and strengthen relationships across generations. Here are four ways to take action:
1. Transform gifting hesitation into proactive planning conversations
Almost 60% of investors view giving during their lifetime as a meaningful way to share their financial values with loved ones.10 Yet, nearly one in three remain hesitant to give while living, citing concerns about unexpected costs, future financial needs, or potential misuse of funds.11 Advisors can turn these concerns into strategic planning conversations that help clients define priorities, set boundaries, and implement safeguards.
2. Engage the next generation early to strengthen multi-generational relationships
Gen X and millennials are more likely than boomers to feel uncertain about whether they will receive a financial gift or inheritance,12 even as nearly 70% of investors with significant assets say they intend to pass down some or all their wealth to younger generations.13 This gap in expectations presents an opportunity for advisors to initiate early family conversations and deepen long-term relationships.
3. Support heirs in developing the skills and confidence to manage new wealth
While 59% of recipients say they feel confident managing a financial gift or inheritance,14 nearly half of givers still doubt their heirs’ preparedness.15 This disconnect highlights a need for advisors to support recipients with targeted education, well-defined expectations, and ongoing planning guidance.
4. Bridge the tax planning gap with practical, client-specific guidance
Despite clear benefits, fewer than half of investors with significant assets view lifetime giving as a strategy to reduce tax liabilities.16 Advisors can revisit this often misunderstood topic and help clients navigate the nuances of lifetime gifting, including exclusions, exemptions, and relevant planning tools.
With trillions of assets in motion, the unfolding wealth transfer is not just a legacy moment, but a business development imperative. Helping clients give confidently by guiding them through both the emotional intent and financial complexity can unlock more meaningful conversations, enhance client retention, and position the advisory practice at the center of generational decision making.
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