Preparing for the Great Wealth Transfer:
The Critical Role of Credit Unions in Supporting Members’ Estate Planning
Over the next few decades, the United States will experience one of the most significant economic shifts in history: the Great Wealth Transfer. According to Cerulli Associates, more than $80 trillion is expected to pass from Baby Boomers to their heirs. This monumental shift in assets—ranging from real estate and retirement accounts to personal investments and family businesses—presents tremendous opportunities to build financial security for future generations.
But alongside the opportunity lies a critical risk: many families are unprepared for the transfer. Without proactive estate planning—such as creating wills, trusts, and clear directives—families could face costly legal complications, strained relationships, and unintended outcomes that could diminish their hard-earned legacies.
Credit unions have a unique and timely opportunity to support their members through this transition, helping protect their financial futures while deepening community trust.
Why Estate Planning Matters More Than Ever
When proper planning is missing, the risks multiply quickly:
- Financial loss: Without a will or trust, assets may go through probate—a costly, time-consuming legal process that can drain estates by thousands of dollars in fees and taxes.
- Family conflict: Lack of clear instructions can lead to disputes among heirs, even in close-knit families, causing emotional distress and permanent rifts.
- Unintended distribution: State laws govern who inherits if there’s no plan in place, which may exclude stepchildren, partners, or dependents who should have been included.
Without clear planning, even sentimental assets—like a beloved home, a family business, or something personal like a vintage motorcycle—can become points of bitter dispute.
Why So Many People Avoid Estate Planning
Despite these risks, estate planning remains startlingly rare. According to the 2024 Wills and Estate Planning Study by Caring.com, only 32% of adults currently have an estate plan in place.
Several factors contribute to this gap:
- Procrastination and discomfort: Discussing mortality and finances can feel uncomfortable, so many people delay these important conversations until it’s too late.
- Perceived complexity and cost: Estate planning can seem overwhelming or expensive, particularly for those unfamiliar with legal and financial processes.
- Misconceptions: Many individuals believe they don’t have “enough” assets to justify planning. However, estate planning is important at all income levels—it protects guardianship for children, designates healthcare decisions, and ensures even modest savings are transferred according to one’s wishes.
The Unique Role of Credit Unions in Estate Planning
Credit unions have long been trusted champions of financial literacy and member wellbeing. Extending their services into estate planning education is a natural, necessary evolution—one that meets today’s growing needs.
Here’s how credit unions can make an impact:
- Offer financial wellness workshops focused on estate planning basics: wills, trusts, healthcare directives, and powers of attorney.
- Partner with estate planning attorneys and advisors to offer discounted services, legal clinics, and webinars tailored for members.
- Demystify the process through accessible resources, step-by-step guides, and community events that make planning approachable, not intimidating.
- Provide platforms like Peacefully that allow members to create, organize, and store legal documents securely—ensuring they can share their wishes easily with trusted deputies.
By stepping into this space, credit unions can help ensure that their members’ wealth, values, and wishes are preserved—not left to the uncertainties of probate court.
Estate Planning as a Path to Financial Wellness
Ultimately, estate planning is not just a legal task; it is a key element of holistic financial wellness. Just as credit unions help members manage day-to-day savings, loans, and investments, they can—and should—help protect long-term financial security through legacy planning.
This isn’t just good service—it’s good stewardship. Helping members prepare for the inevitable transitions in life cements the credit union’s role as a lifelong financial partner across generations.
As the Great Wealth Transfer accelerates, those who prioritize education and support around estate planning will build stronger, more resilient communities—and honor the financial dreams of their members.