For many clients, success is defined by much more than just financial wealth. It encompasses professional achievements, the happiness and wellbeing of loved ones and, perhaps most importantly, the ability to support the aspirations of future generations. Yet, the process of passing down this legacy raises some challenging questions, and the evolving needs and values of younger generations can make this process still harder.

When helping clients find an appropriate path through these shifting generational dynamics, it can be instructive to reflect on the work of Dr Eliza Filby, a generational expert who offers fresh insights into how different age groups view money, family and financial legacy. For families thinking about succession planning, these insights can be helpful in shaping a thoughtful approach to wealth transfer that resonates with both existing values and future needs.

Beyond the “bank of Mum and Dad”

The phrase “bank of Mum and Dad” has been in common usage for several years to describe the financial assistance parents often provide to their children, particularly in purchasing a first home. Filby explores the broader societal implications of this intergenerational financial support in her book “Inheritocracy”, arguing that it is creating a system in which life opportunities are increasingly influenced by family wealth rather than merit. For families planning their legacies, this raises questions about fostering independence and responsibility across generations.

Filby’s work also suggests that wealth transfer may no longer be seen as a one-time event, noting that, “the bank of Mum and Dad is no longer a lifeline; it’s a permanent fixture of family planning.” Given the rising cost of living, property prices and other economic pressures, her research implies that ongoing financial support may be essential for the next generation to meet financial milestones.

For our clients, this underscores the value of inheritance strategies that can offer more enduring support, rather than representing a one-time transfer of assets. Structuring inheritance plans with flexible options, such as establishing trusts or phased gifting strategies, can allow parents to support their children while retaining a measure of control over how family wealth is used.

Bridging generational gaps in financial values

Each generation has its own financial values shaped by the unique economic and social context of the time. For instance, the Baby Boomer generation – now in their 60s and 70s – may be protective over assets and value security, while Millennials (generally defined as people born between the early eighties and the mid-to-late nineties) often lean towards financial fluidity and may prioritise lifestyle choices over traditional asset accumulation (sometimes, no doubt, to the frustration of their parents).

Filby’s insights also highlight how younger generations are challenging traditional patriarchal family structures, seeking more inclusivity and shared decision-making in financial matters. For families, this shift underscores the importance of fostering alignment between generations, ensuring that wealth transfer reflects both evolving values and practical needs.

Recognising these generational differences can help families shape inheritance plans that foster smoother transitions and build a meaningful legacy. By aligning wealth transfer with each generation’s values, families can ensure these plans are both practical and personally significant.

Planning for financial independence – and interdependence

Filby also observes that “younger generations are not only inheriting wealth; they’re inheriting the responsibility to manage and sustain it.” Many young adults today worry not only about their financial security but about the wellbeing of family wealth overall.

Involving younger generations in the planning process or discussions on wealth transfer can help create a sense of continuity and responsibility. Filby’s research shows that involving heirs in these conversations increases their understanding of the family’s financial goals, making it more likely that they’ll preserve wealth in line with family values.

Conclusion: why Filby’s insights matter now

Dr Eliza Filby’s work reminds us that wealth transfer is not just about assets. It’s about building a legacy that encompasses values, family history and a commitment to the community. As she notes, “for many, legacy planning has become about creating a foundation that does more than preserve wealth – it preserves family identity.”

Her research provides a valuable lens through which families can view their financial legacy and help us to bring depth to your wealth transfer planning. For clients thinking about how best to structure their assets for future generations, Filby’s research illustrates why generational understanding is an essential consideration.

This generational perspective enables families to structure plans that resonate with each generation’s values, fostering a legacy that can benefit many. Whether through open family discussions, flexible inheritance structures or philanthropic efforts, we provide guidance for families seeking to align wealth with the evolving values of each generation.

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