Family conversations, not paperwork, drive wealth transfer readiness

Completing an estate plan is not the same as being prepared for the future. That is the central finding of new research from Fidelity Investments which reveals that only 37 per cent of older adults with significant assets report high peace of mind about their planning, even among those who have documented their retirement, healthcare, and estate intentions.

The 2026 Transition Ready Family study, produced by the Fidelity Center for Family Engagement, surveyed 654 married or partnered U.S. adults aged 55 or older with a total net worth of at least $500,000 and at least one adult child.

"Creating a plan is only part of preparing families for future transitions," said Timothy Habbershon, managing director and founder of the Fidelity Center for Family Engagement, in a written statement. "For families to have peace of mind, it requires ongoing conversations and a shared understanding so family members can confidently carry out those plans."

Wealth alone is not enough

The study challenges a common assumption: that greater financial preparation naturally leads to greater peace of mind. More than four in 10 respondents with over $5 million (U.S.) in net worth reported only moderate or low peace of mind. Wealthier households were no more likely to have lower anxiety around planning than less affluent peers.

Among those who had completed planning documents, more than half (51 per cent) still lacked peace of mind. However, those who had communicated completed estate plans to their adult children were more than three times as likely to report high confidence in their overall planning.

As Wealth Professional has reported, Canadian advisors already fear significant business risk from the generational wealth transfer in part because client retention drops sharply when assets move from a primary client to their children. The Fidelity findings suggest the gap between having a plan and communicating it may be part of what makes those transitions so difficult to manage.

A persistent silence around planning

The research identifies a consistent pattern of families deferring or avoiding substantive planning conversations. Only 21 per cent of parents surveyed had communicated a completed estate plan to their adult children. Eighteen per cent had shared completed retirement plans, and just 13 per cent had shared healthcare plans.

Approximately one-third of parents reported never having had an open dialogue with their adult children on any planning topic. The most common barrier among parents who had avoided the conversation: a belief that it had already been addressed and needed no further discussion. For those who had never initiated any planning dialogue at all, the most cited obstacle was not knowing how to begin.

These patterns are not unique to the United States. As Wealth Professional has previously covered, Canadians have a demonstrated tendency to sidestep the important conversations around wealth transfer with the vast majority having had no discussion with a financial advisor about the financial and tax implications of passing on their assets.

Amanda Lott, head of Financial Planning and Advice Products at Fidelity Investments, described the gap clearly in a written statement: "For many families, preparedness isn't just about having a plan in place. It's about ensuring loved ones understand that plan and are ready to carry it forward when needed."

What 'transition readiness' actually requires

The Fidelity study introduces the concept of transition readiness - a composite measure that incorporates financial preparation, ongoing family dialogue, and shared clarity around future roles.

Families with high transition readiness were four times more likely to have high peace of mind than those with lower readiness, and five times more likely to have high confidence in their estate and end-of-life planning specifically.

The highest net worth households were no more likely to achieve high transition readiness than those with more modest assets — again reinforcing that dollars do not replace dialogue.

The research also identified a notable gap around role clarity. While 66 per cent of parents said their adult children would play a significant role in executing their plans, nearly one-third of those parents had not discussed the specifics of that role with their children.

Those who had spoken about future roles were significantly more likely to have completed and communicated their plans, and to report open dialogues across all three planning areas studied: retirement and lifestyle planning, health and long-term care planning, and estate and end-of-life planning.

One finding stood out for its counterintuitive nature: a major health event did not prompt greater transparency. Despite identifying a serious health incident as the top hypothetical reason they would become more open with adult children, parents who had actually experienced such an event were no more likely to have shared planning details or had substantive conversations than those who had not.

The opening for advisors

For Canadian financial advisors, the research underscores what is increasingly regarded as an underutilised service area. Having navigated a client through decades of portfolio management, advisors who can also facilitate the harder conversations around roles, responsibilities, and family communication are well positioned to deepen those relationships — and protect them through transition.

As Wealth Professional has highlighted, messy estates and absent planning conversations carry real consequences for families and practices alike and they represent a planning gap that advisors are uniquely placed to help close.

The Fidelity Center for Family Engagement offers conversation guides, coaching resources, and research tools designed to support advisors and families in navigating these discussions. The full 2026 Transition Ready Family report is available through the Fidelity Generations Project at generationsproject.com.