For much of the modern era, legacy has been defined by dynasties, estates and occasional acts of conspicuous charity: a new wing at a hospital, a library at an alma mater. Today, as the Great Wealth Transfer gathers pace, that definition is changing. Over the coming decades, trillions of dollars will pass from baby boomers to their children and grandchildren, reshaping not just who holds capital but also how it is handled.
Unlike their predecessors, many younger heirs are intent on deploying wealth for impact: funding smaller, targeted projects that can deliver change more enduring than a name carved in stone. Charities Aid Foundation research shows next-gen donors want to see measurable outcomes in their lifetime – “giving while living” – seeking projects where they can use their time and influence, as well as their money. This cohort increasingly views wealth as a tool for personal and social meaning, rather than material accumulation.
Why are heirs keen to invest with purpose?
Caroline Piraud, Head of Philanthropy at Julius Baer, sees this shift first-hand: “Some young heirs don’t even want to know the amount they are going to inherit,” she says. “They tell me, 'I don't need it – the purpose of life is not in material things’. They also shy away from the responsibility as well as the complexity that comes with the wealth, and they value sharing and caring more than ownership.”
For Beatrice Trussardi, legacy was never going to be simply about preserving a brand. After leading the family business, she channelled its cultural capital into contemporary art and social impact. “Each generation taking over should make a change,” she says. “You cannot copy your ancestors. Otherwise you are a follower. You should be authentic, true to yourself.”
That instinct to redefine inheritance is increasingly common. The Great Wealth Transfer is changing not just the scale of inheritance but the moment its impact begins. Many heirs now begin philanthropic work in their teens. Piraud says: “The youngest person I worked with was 14. We gave them a budget to invest in a charitable project and asked them to report to the board of trustees. They learned financial skills, project management and communication. It’s a safe way to prepare for business responsibilities.”
This early involvement matters, says Piraud. Families that invite heirs to join charitable arms or impact committees embed purpose into the fabric of inheritance. Exposure to social causes also fosters qualities that may be harder to develop in sheltered environments: accountability, empathy and strategic thinking.
How common is charitable giving among wealthy families?
Insights from Julius Baer’s Family Barometer 2025 show that ultra-high-net-worth individuals engage in philanthropy primarily through regular donations (44.2%), with over a quarter creating their own charitable foundations (26.6%). A smaller proportion say they would like to begin giving (8.4%).
Motivations for giving vary across regions, but the trend is unmistakable. In Asia-Pacific, 86 per cent of family offices are now engaged in philanthropy, often using structured giving to institutionalise family values. In the US, 54 per cent of family offices are active in impact investing, double the level of 2015. European heirs are also increasingly pushing sustainability and social justice higher up the family agenda.
For many families, the catalyst is travel and digital connectivity, which exposes younger heirs to global inequality at an earlier age than previous generations. That same impulse to connect more directly also drives Beatrice Trussardi, who says that her foundation deliberately took art out of galleries and into public spaces to create a “direct relationship with people daily – not only specialised art-loving audiences”. The aim, she says, was to make art and culture accessible in everyday settings.
How does Julius Baer help heirs to invest in their values?
Turning values like these into lasting structures is not always straightforward. For advisers, the challenge is guiding families to codify a sense of purpose so it endures. Piraud believes that values are the glue that prevents wealth erosion across generations: “Families often over-invest in legal frameworks and under-invest in human capital. Values provide unity, belonging, even pride of being part of a dynasty.”
At Julius Baer, one tool Piraud uses is a values exercise in which family members select images that resonate with their ambitions and legacies, then build conversations about them into a mission statement or governance framework. “We use this to help them translate abstract intentions into practical instruction,” she says. “It opens dialogue across generations and prevents misunderstandings later.”
Codification can also take the form of family constitutions, impact clauses in trusts or structured foundations. The choice depends on appetite for visibility, involvement and control. “Some people want their name on a building. Others prefer anonymity and discretion through donor-advised funds,” Piraud says.
For the next generation, philanthropy is not a footnote to wealth planning; rather it is often the first conversation. “It is not unusual for next-gen clients to want to discuss purpose-driven investments before any return on investments, including impact investing and philanthropy,” says Piraud. “They want real-time updates, short videos or testimonials from the people they are supporting, not just a 60-page report.” Philanthropy also provides heirs with agency; by managing funds for causes they care about, they can test their leadership skills in a controlled yet meaningful environment.
As vast sums change hands, legacy is becoming less about preservation and more about contribution. Heirs who once might have been expected to simply maintain family assets are reshaping the whole meaning of inheritance, choosing to use capital to advance cultural, social or environmental change.
Piraud reports that Julius Baer’s expertise is about supporting families to future-proof their legacies by intentionally aligning values and assets. In practice, this can mean facilitated workshops, drafting family constitutions or philanthropic structures that give heirs both voice and influence. “It’s not only a financial transfer,” she says. “It’s a transfer of responsibility and, with the right frameworks, it can also be a transfer of purpose that leaves a lasting legacy.”
This content was paid for by Julius Baer and produced in partnership with the Financial Times Commercial department.