October 28, 2026
8 min read
The case for an early inheritance: Why some parents are transferring wealth sooner
Parents and adult children disagree about whether the next generation is ready to inherit. New Wells Fargo Wealth & Investment Management research shows families are transferring some wealth earlier and using the experience to inform what comes next.
Key takeaways
- An early inheritance may give families useful experience before they make decisions about the remaining plan.
- Parents and adult children have sharply different views of the next generation’s readiness to manage an inheritance.
- Wells Fargo specialists are seeing families transfer some wealth earlier and share more about the plan, using what they learn to inform what comes next.
You can decide how much to leave your children and when they can access it, but no estate plan can predict how your kids will respond when the wealth becomes theirs. So some parents are transferring part of the inheritance early to see what happens, then adjusting the rest of the plan based on what they learn.
An estimated $124 trillion in U.S. wealth is expected to change hands through 2048 in what’s been called the Great Wealth Transfer. As that shift unfolds, the question for many families isn’t just how much to give. It’s when.
Parents and adult children disagree about readiness
If you’re wondering how your kids will handle their inheritance, you’re not alone. The Wells Fargo Wealth & Investment Management 2026 Wealth Transfer Study found that 93% of parents know how much wealth they expect to pass on, but only 54% of adult children say their parents have shared an amount or expected range.
More than a third of parents worry their children lack the financial skills to manage an inheritance, while 88% of adult children say they are ready for the responsibility. That doesn’t mean they think they have it all figured out: 76% acknowledge they still have a lot to learn about managing wealth.
“We’re talking about wealth transfer, which is really an emotional issue for families,” said Lorne Maltenfort, National Director for Private Wealth Planning, Wealth & Investment Management. “Is the money safe? Can their kids handle the money? Should it be in a trust or not? Are we concerned about investment risk? Are we even concerned about privacy? What about fraud?”
Those questions are hard to answer while the inheritance is still hypothetical. Some families are choosing not to leave it that way.
“They're worried that their children will be spoiled by too much money or any money. At the same time, they want to make sure there's a safety net.”
Some families aren’t waiting until death
Sixty percent of parents surveyed expect to begin transferring wealth to their children during their lifetimes.
“If you wait and give a significant amount of money at death, you’ll never see how each family member reacts,” said Maltenfort. “You may actually want to see how they deal with that wealth.”
Discuss your expectations before initiating an early transfer, and take time to learn from the experience before transferring the rest of the inheritance.
Consider an earlier transfer as part of a larger estate-planning decision and look at how it fits with your goals, your financial circumstances, and the rest of your plan.
Know what you want the money to do
Before deciding how much to give, start with why you are giving it. An earlier inheritance might help your child buy a home, pay for education, start a business, or meet another major need.
But helping now comes with a harder question for parents: “They’re worried that their children will be spoiled by too much money or any money,” said Bob Petix, Private Wealth Strategist with Wealth & Investment Management. “At the same time, they want to make sure there’s a safety net.”
Petix is also seeing parents balance two competing instincts. They want to empower the next generation, but they may still want some control. He said those approaches can be blended, though families may need to make compromises.
Purpose matters. There’s a difference between using your wealth to carry out your wishes and giving your children more freedom to make their own choices.
Let experience guide the plan
An earlier transfer may reveal something the original plan couldn’t anticipate. Maltenfort said families can return to their initial ideas and decide whether the plan still works or should look “slightly different or vastly different.”
“We’re able to help create better structures that are going to help manage each family member and empower them, or manage certain family members and empower others,” Maltenfort said.
Bring what you learn back to your advisors before deciding what happens with the remaining wealth. If that conversation leads you to consider a trust, read about common mistakes parents make when setting one up.
The old “need to know” approach is changing
Some parents already know how complicated an inheritance can become. Nearly three in 10 parents who inherited wealth reported negative family experiences, including hurt feelings, disagreements about fairness, estrangement, surprises, or legal fights.
Their children want more preparation: 82% say discussing inheritance would help them prepare for the future.
Petix has seen older generations move away from the “need to know” approach that was more common earlier in his career. “I’ve noticed much more willingness to open up about planning generally, not necessarily the zeros,” he said. “They may instead do some broader explanations of what’s going on and share more in stages.”
That doesn’t require disclosing every account balance or the full value of your estate. You can begin with the purpose behind the plan and share more over time.
For a deeper look at values, responsibilities, and preparing the next generation, read more about preparing your family for a wealth transfer.
An early inheritance isn’t simply about giving your children money sooner. It’s the opportunity to pass along your values as well.
Giving earlier won’t be right for every family. Before making a transfer, consider your own long-term financial security and how the decision fits into your broader financial and estate plan.
Related links
- Essentials of Wealth Transfer | Wells Fargo Advisors
- If a child may need more managing or a different approach to access, parents can also consider how and when a trust distributes assets.
Get professional guidance
A Wells Fargo Advisors financial advisor can help you decide how an early transfer fits into your wealth-planning goals.
FAQ
An early inheritance is wealth you give your children during your lifetime rather than leaving the entire transfer until after your death.
It depends on what you want the transfer to accomplish, your financial circumstances, and how the decision fits into your larger estate plan. Giving earlier may meet an immediate need and give your family experience before the rest of the inheritance arrives. What you learn may also help you reconsider the remaining plan.
You don’t have to start by disclosing the full value of your estate. You can begin with a broader explanation of your plan and share more information in stages.
