In U.S., Instant Wealth Spawns Philanthropy Boom

According to a survey released by BMO Wealth Management of 1,004 United States residents over the age of 35, if they suddenly received a large financial windfall, 53% said that sharing the wealth with their family, friends, and charities would be a primary goal.

The next popular goals were paying off debts at 51%, investing at 49%, and 43% claim that their financial goals would remain stationary. 29% of those surveyed were concerned with helping others at it pertained to their estate and legacy, and 15% were honest in that they would be worried about avoiding family conflicts over the money.

“Receiving an unexpected amount of money or assets can bring feelings of relief, joy and responsibilty, so it’s critical to take time to consider all the options,” said Tania Slade, national head of wealth planning at BMO Wealth Management (U.S.). Lotteries may be an obvious source of sudden income or wealth, but it may not be the most relevant. More than $12 trillion in assets are in the process of being transferred from the Greatest Generation to baby boomers, and more than twice that are expected to be transferred to their heirs in the next few decades. 

“At the peak, between 2013 and 2045, 10 percent of the total wealth in the United States will be changing hands every five years,” the report said

See Raymond Fazzi, In U.S., Instant Wealth Spawns Philanthropy Boom, Financial Advisor, December 10, 2018.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.