While everyone (myself included) mentions the great generational wealth transfer that is happening as we speak, as older generations pass on wealth to younger generations (over $100 trillion over the next 20 years), another transfer of wealth happens quite frequently. Sometimes younger generations buy a home for their parents!

Yup, I have witnessed this multiple times, for as long as I have been in real estate. The story is often similar:  a younger client who has grown up in a family of modest means that provided an amazing education that led to a successful career, and wealth, buys a home for parents as a means of 'giving back'. This has often delivered the most enjoyable, satisfying moments of my career. It is often the stuff of dreams. 

While heart-warming, this can also deliver very practical solutions to big problems. Parents without large savings or wealth will need a home as they age, regardless, and often, kids help with this expense either way. Owning that home (often held in trusts), can be a practical and wise financial decision on top of all the other benefits.

So when we think of advising our clients around the subject of wealth transfer, mostly related to kids and grandkids, don't forget about the parents and grandparents!