Baby Boomers across Britain are beginning to pass on what they spent their working lives building. Property. Pensions. Savings. In some cases, businesses. The STEP Barometer 2026 — a survey of more than 500 trust and estate practitioners worldwide — found that 77% of professionals have already seen this generational transfer in their clients’ estates over the past twelve months.

This is not a forecast. It is already happening.

The UK alone holds an estimated £5.5 trillion in housing wealth, much of it owned by the over-65s. Globally, around $83 trillion is expected to change hands between generations over the next two decades. For many British families, the question is no longer whether wealth will be passed on, but whether anything has been done to make sure it goes where it should.

At Right Legal Group, we work with families at exactly this moment — when the planning either holds or doesn’t. What follows is an honest account of what the STEP research tells us, what it means under English and Welsh law, and what families can do now to get ahead of it.

What Is the Great Wealth Transfer?

The term refers to the movement of assets from the Baby Boomer generation — broadly, those born between 1946 and 1964 — to Millennials and Generation Z. It is being shaped by three things: the demographic size of the Boomer cohort, longer lifespans, and the scale of wealth they accumulated during decades of rising property prices and defined-benefit pensions.

In the UK, that wealth is heavily concentrated in residential property. Unlike liquid savings, a family home cannot simply be divided. It has to be valued, decisions have to be made about selling or retaining it, and the inheritance tax implications can be significant. The STEP research found that the top concern when passing wealth to the next generation is that heirs are not prepared to handle it. In the UK, where so much of that wealth is tied to property, this concern becomes very practical very quickly.

What happens to the family home when one sibling wants to sell and another doesn’t? What happens when no one told the children what Mum actually wanted? These are not edge cases. They are the conversations we have with families every week.

The Inheritance Tax Problem UK Families Are Underestimating

The nil-rate band — the threshold below which no inheritance tax is charged — has been frozen at £325,000 since 2009. A further allowance of up to £175,000 applies when a residential property is left to direct descendants. But with UK property prices having risen sharply over fifteen years, estates that were once well below the threshold are now well above it.

From April 2027, unused pension funds will also be brought into the taxable estate for inheritance tax purposes. This is a significant change. Many people have been treating their pension as a tax-efficient vehicle for passing wealth to the next generation. From 2027, that changes. Estates that have not been reviewed with this in mind may face tax bills that were entirely avoidable with earlier planning.

The STEP Barometer 2026 found that 81% of practitioners globally cite tax and transparency obligations as the main driver of client decision-making around estate planning. In the UK, that means families who delay are not simply putting something off — they are potentially leaving tens of thousands of pounds in avoidable tax on the table.

Why the Next Generation May Not Be Ready

64% of practitioners surveyed in the STEP research say the biggest concern their clients have about passing on wealth is that the next generation cannot handle it wisely. This is not a comment about intelligence or competence. It reflects the absence of honest family conversations about money, what inheritance is for, and what it demands of the people who receive it.

We see this in practice. Families where wealth has never been discussed openly. Where adult children have no idea of the scale of their parents’ estate. Where no one has thought about what the money is actually meant to do, or what values should go with it.

When families inherit without context, clarity, or any sense of what their parents actually wanted, the result is rarely conflict over greed. It is conflict over grief — about who knew best, who was loved most, who was left out, and why. A well-made will, a letter of wishes, and a real family conversation before it is needed can prevent all of that.

Blended Families: The Gap in Most Estate Plans

The STEP Barometer 2026 identifies blended families — those formed through second marriages, divorce, stepparent relationships, and cohabitation — as the most common source of succession planning disputes, cited by 71% of practitioners globally.

Under English and Welsh law, stepchildren have no automatic right to inherit. If you have stepchildren you wish to provide for, this must be stated explicitly in your will. Without it, your estate passes according to the intestacy rules — and stepchildren receive nothing, regardless of how close the relationship was.

Cohabiting partners are in an equally exposed position. In England and Wales, there is no such thing as common law marriage. A partner who has lived with you for twenty years has no automatic right to inherit if you die without a will. This remains one of the most widely misunderstood areas of English law, and it leaves a large number of people seriously unprotected.

68% of practitioners in the STEP survey report that the most common source of friction in these situations is conflict between children from a first relationship and a surviving spouse or stepparent. This is almost entirely predictable. And it is almost entirely preventable.

Family Business Succession: A Harder Conversation

36% of practitioners in the STEP survey are seeing an increase in business-owning families looking to sell rather than pass their business to the next generation — primarily because they do not believe the next generation is capable of running it, or interested in doing so.

In the UK, Business Relief provides significant inheritance tax relief on qualifying business assets, but only when the planning is done correctly and in time. Without a proper succession plan, a family business can face a tax bill on death that forces a sale — destroying value and potentially ending a business that took decades to build.

The most common causes of friction in family business succession, according to the STEP data, are parents wanting to retain control, differences in what the next generation actually wants, and disagreements about who should take over. These are family problems before they are legal ones. The legal structures help, but they can only work when the family has had honest conversations about what the business means and what should happen to it.

What UK Families Should Do Now

The practical questions are straightforward, even if the answers sometimes take time.

Does your will reflect your current family situation? If you have remarried, had children, acquired property, or experienced significant changes in your finances since you last reviewed your will, it is likely out of date. A will written before pension inheritance tax changes, before a second marriage, or before significant asset growth may not protect your family effectively.

Do you have a Lasting Power of Attorney? The wealth transfer does not only happen at death. Cognitive decline, illness, and accident can all affect your ability to manage your affairs before you die. An LPA ensures someone you trust can act on your behalf while you still have the capacity to choose them.

Have you looked at the inheritance tax position of your estate? There are legitimate, HMRC-compliant strategies available — through trusts, lifetime gifting, pension restructuring, and more. These strategies require specialist legal and financial advice. The window to act ahead of the 2027 pension changes is closing.

Have you spoken to your family? Not about spreadsheets or asset values, but about what you want your legacy to mean, who you want to provide for, and why. The families who handle inheritance well are almost always the ones who had these conversations while they could.

Frequently Asked Questions

What is the Great Wealth Transfer and does it affect UK families?

Yes. The Great Wealth Transfer refers to the historic movement of wealth from the Baby Boomer generation to younger generations. In the UK, this includes property, pensions, savings and business interests accumulated over decades. UK families are directly affected — particularly those with property wealth, business interests, or significant pension assets. The STEP Barometer 2026 found that 77% of estate planning professionals have already seen evidence of this transfer in the past twelve months.

How does Inheritance Tax work in the UK?

Inheritance Tax is charged at 40% on the value of your estate above the nil-rate band of £325,000. An additional residence nil-rate band of up to £175,000 applies when a residential property passes to direct descendants. From April 2027, unused pension funds will also form part of the taxable estate. The amount payable depends on your specific circumstances — Right Legal Group can provide a confidential estate review.

Do stepchildren inherit automatically in England and Wales?

No. Under English and Welsh law, stepchildren have no automatic right to inherit from a stepparent. If you wish to provide for stepchildren, this must be explicitly set out in your will. Without a valid will, your estate passes under the intestacy rules, which do not recognise stepchildren.

What is a Lasting Power of Attorney and why do I need one?

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you lose mental capacity. There are two types: one for property and financial affairs, and one for health and welfare. Without an LPA, your family may need to apply to the Court of Protection — a process that is expensive and slow, at an already difficult time.

What can I do now to prepare for passing on my wealth?

The most important steps are: make or review your will, ensure Lasting Powers of Attorney are in place, review your estate’s Inheritance Tax position, consider whether any planning strategies are appropriate for your circumstances, and speak to your family about your wishes. Right Legal Group can guide you through all of these.

Can Right Legal Group help with succession planning for a family business?

Yes. We work with business-owning families on succession planning, including reviewing Business Relief eligibility, Inheritance Tax Planning and creating legal frameworks that protect both the business and the family. Call 01332 424 511 to discuss your situation.