The Great Wealth Transfer: 5 Risks Agents Need to Address

• September 30, 2026

By Katherine Frattarola

By 2048, baby boomers are set to pass on approximately $124 trillion to younger generations, according to Cerulli. The shift has been dubbed the Great Wealth Transfer. Too often, conversations associated with the Great Wealth Transfer center primarily on investment strategy and estate planning. But there’s also real risks that come with this shift. Missing them can result in losing assets just as quickly as they were inherited.

Take this true story: A family came into significant wealth and soon thereafter acquired $2.5 million in jewelry. They did what most advisors recommend: they had it professionally appraised and scheduled on their policy. But while they were away posting photos from a luxurious European vacation, their home was burglarized. Every piece was taken.

In this case, they had their jewelry appropriately scheduled and a robust insurance program was in place, but no one had considered the risk that comes with sharing whereabouts in real time—a blind spot for many families adjusting to newfound wealth.

Insurance advisors who understand these risks can be an invaluable resource for clients inheriting material wealth, helping ensure their new assets are properly protected from day one.

Independent insurance agents can help their clients guard against these five risks exacerbated by the Great Wealth Transfer:

1) Cyber exposure. Cyber risk can be found in many areas: social media oversharing, artificial intelligence (AI)-generated deepfakes that exploit someone’s name or likeness, cryptocurrency scams and phishing attempts tied to asset transfers.

2) Hiring household staff. Bringing on staff such as a housekeeper, nanny or driver brings liability many families don’t think to ask about. If a staff member slips on ice on the property, the family can be held responsible.

3) Auto liability. This can quickly become a bigger exposure than clients expect. Someone who inherits a luxury sports car and lets a friend take it for a spin can face significant liability if something goes wrong, especially without the right casualty or umbrella coverage in place.

4) Travel. Adventurous destinations have become more common, particularly across multiple generations. More exposure to unfamiliar places and experiences creates more opportunity for incidents to occur.

5) Major home renovations. Adding a new wing or building a pool usually requires different coverage than what’s already in place. If a contractor working in a home causes damage and renovation plans weren’t disclosed to the carrier, coverage may not respond. 

Each of these risks can be reduced with the right insurance and mitigation strategies in place, but that requires education. Sharing real examples, like a jewelry theft or a household employee slipping on black ice, is an effective way to help clients coming into new wealth understand exposures they may not have considered before. Brokers can also guide clients on good risk habits, such as being more thoughtful on social media.

Starting these conversations early, before a wealth transfer is complete, gives clients the best chance to protect their new assets and avoid coverage gaps that become pricey surprises later. By building these practices into client relationships and carrying them forward as wealth passes to the next generation, agents can foster lasting relationships that outlast any single policy.

Katherine Frattarola is head of HUB Private Client.