Hawaiʻi’s Great Wealth Transfer: Are You and Your Family Ready?

Whether you’ve heard it called “The Great Wealth Transfer” or “The Silver Tsunami,” one thing is certain: Baby Boomers will pass on an unprecedented amount of wealth to younger generations in the coming decades — some estimates place that transfer at $30 to $90 trillion. That’s “trillion” with a “T.”

Here in Honolulu and across Hawaiʻi, this shift in wealth presents both a remarkable opportunity and a significant risk, depending on how well families prepare.

When Inheritance Goes Wrong

While this massive wealth transfer could be a blessing for future generations, the truth is more complicated. Studies show many heirs are unprepared to manage sudden wealth, often spending it down quickly or facing family conflict.

• A study from Ohio State University revealed that one-third of heirs had negative savings within two years of receiving an inheritance.

• Research from The Williams Group found that 70% of intergenerational wealth transfers fail by the second generation, often due to a lack of planning and communication.

The takeaway? Without proactive planning, a well-meaning inheritance can do more harm than good.

How to Prepare for the Wealth Transfer in Hawaiʻi

Whether you’re passing wealth on or expect to inherit it, there are steps you can take today to ensure that your legacy supports — rather than destabilizes — your loved ones.

1. Create (or Update) Your Estate Plan

If you don’t yet have an estate plan — or if it’s been years since yours was updated — now is the time. Every adult in Hawaiʻi, regardless of age or assets, should have essential estate planning documents in place.

At my law firm here in Honolulu, I guide clients through a unique Life & Legacy Planning Process that goes far beyond basic legal documents. We build long-term relationships with our clients and ensure their plans evolve with changes in life, the law, and assets.

2. Talk Openly With Your ʻOhana

Don’t wait until retirement or illness to talk about inheritance. Set the tone early by sharing your values, intentions, and expectations with your children, grandchildren, and other heirs.

These conversations don’t have to be about dollar amounts. Focus instead on what matters most to you — like supporting education, giving back to the community, or preserving family traditions here in Hawaiʻi.

Need help having these conversations? I offer support and tools to guide families through even the most delicate discussions with clarity and care.

3. Clarify the Purpose of Your Wealth

Estate planning isn't just about passing down assets — it's about passing down purpose. By sharing your hopes for how your wealth will be used, you give your loved ones meaningful direction.

Whether it’s paying for college, helping with a down payment on a home in Hawaiʻi, or investing for future security, communicate your goals while you’re still here. That clarity can prevent future misunderstandings and help your heirs feel empowered, not burdened, by your legacy.

Life & Legacy Planning for Hawaiʻi Families

At the Law Office of Keoni Souza, we specialize in more than just wills and trusts. Our Life & Legacy Planning Process is designed to preserve not only your assets, but also your values, stories, and life lessons — the things that truly define your legacy.

With thoughtful guidance and ongoing support, we help families across Hawaiʻi navigate the coming wealth transfer with confidence, clarity, and aloha.

FAQs

How much wealth is expected to transfer in the coming years?

Between $30 and $90 trillion is projected to transfer from Baby Boomers to younger generations nationwide.

Why is estate planning especially important in Hawaiʻi?

With high property values, multigenerational homes, and unique cultural considerations, estate planning in Hawaiʻi must be carefully customized to avoid conflict and unnecessary court involvement.

What happens if I don’t have a plan?

Without a valid estate plan, your assets could go through Hawaiʻi’s probate process, which can be lengthy, expensive, and public — leaving your loved ones vulnerable.

If you're ready to take the first step in protecting what matters most, let’s talk. I’m here to help Honolulu and Hawaiʻi families prepare for the future — with heart, intention, and clarity.

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This article is brought to you by the Law Office of Keoni Souza, a boutique estate planning firm located in Honolulu, Hawaiʻi, proudly serving families on Oʻahu and across the Hawaiian Islands. At our firm, estate planning is about more than documents — it’s about creating lasting peace of mind for you and the people you love. Through our unique Life & Legacy Planning Process, we guide you to make informed, empowered decisions that protect your wealth, your wishes, and your family’s future. To get started, contact our Honolulu office today to schedule your Family Wealth Planning Session. Mention this article to learn how you can receive this $750 session at no charge.

Disclaimer: The information on this website is for informational purposes only and should not be considered legal advice. For guidance tailored to your specific situation, please consult an estate planning attorney licensed in the State of Hawaiʻi. Use of this website or communication through this site does not create an attorney-client relationship with the Law Office of Keoni Souza, LLC.