By Ali Habashi, Homethrive
Something unprecedented is happening in American households, and credit unions that pay attention now will be far better positioned than those that wait.
Over the next two decades, an estimated $84 trillion in assets will change hands as Baby Boomers pass their wealth onto their children. Institutions that will come out ahead are the ones actively building relationships with the next generation of account holders, before the transfer happens.
For credit unions, the stakes are especially high. Your competitive advantage has always been member relationships and community trust. The Great Wealth Transfer is either a threat to that model or an opportunity to deepen it.
The first wave of this transfer will flow to surviving spouses, predominantly women, who statistically outlive their male partners. That means a significant portion of inherited wealth will land in the hands of members who may have had limited involvement in the household's financial decisions up to that point.
From there, assets will move to adult children. But between the spouse inheriting and the children receiving their share, a substantial amount of money is likely to be consumed by healthcare, long-term care, family conflict, and the logistical costs of death itself.
One of the most significant (and underappreciated) factors shaping the Great Wealth Transfer is the cost of caregiving. Currently, 73% of Americans are managing some form of caregiving responsibility at home, whether for an aging parent, a spouse facing a new diagnosis, or an adult child with complex medical needs.
According to AARP, family caregivers spend an average of more than $7,200 out of pocket each year on caregiving-related expenses alone. That figure doesn't account for lost wages, reduced retirement contributions, or the long-term financial setbacks that follow.
A large and growing portion of your membership falls into what's known as the Sandwich Generation, adults in their 30s and 40s who are simultaneously raising children and supporting aging parents. The numbers reveal a telling story: 32% of midlife adults with at least one living parent are already providing regular financial support to them, and 42% expect to do so in the future. In addition, more than half contributed $1,000 or more to parental expenses in just the past year; one in five gave $5,000 or more.
When a member's parent or spouse requires professional care, the financial impact can be staggering, and it erodes the inheritance that might otherwise pass to the next generation.
A room in a long-term care facility runs between $9,000 and $11,000 per month at the median
Assisted living averages $6,200 per month
Memory care – one of the fastest-growing needs as the population ages – costs a median of $8,019 per month as of 2026, roughly 15% to 25% more than standard assisted living
For a member facing a parent's multi-year cognitive decline, that math adds up quickly. And for the family members who expected to inherit a meaningful sum, those expectations are often dramatically revised.
Even after a loved one passes, the financial turbulence continues, and often in ways families don't anticipate.
The average funeral cost is $8,300 in 2024 for a viewing and burial. Cremation, often assumed to be significantly cheaper, still runs at around $6,280. For families waiting on estate settlement, these costs come directly out of pocket.
Probate is another common obstacle. Without proper estate documentation, assets can be tied up for months or even years, a frustrating and expensive process for grieving families who need access to funds.
Then there are the threats families rarely think to prepare for: roughly 800,000 Americans each year have their identities stolen after death, as scammers comb obituaries for personal data. Homes of the recently deceased are also frequently targeted for theft. These instances are common enough to represent a real threat to the assets your members worked their whole lives to build.
Even when an estate is substantial, the transfer process isn't guaranteed to go smoothly. Research from Canada found that 80% of families experience conflict following the death of a loved one, and financial disputes are often at the center of it.
The reasons are rarely surprising: unequal caregiving contributions, different financial circumstances among siblings, blended families with competing claims, or simply a will that was never updated to reflect life changes. What is surprising is how universal these conflicts are, regardless of the size of the estate.
For credit unions, this matters because contested estates delay settlement, deplete assets, and create the exact conditions in which families shop around for new institutions rather than staying with an existing one.
This is where credit unions have a genuine advantage.
Build relationships with the whole family, not just the primary account holder. If your only connection is to one member, that relationship ends when they do. Encouraging members to designate beneficiaries, open joint or individual accounts for spouses and adult children, and engage with your institution proactively creates the kind of familiarity that makes it natural for heirs to stay put after a transfer.
Streamline your bereavement process. Too many credit unions still handle estate accounts across multiple departments, requiring grieving family members to tell their story and submit their documents again and again. A single point of contact, a clear internal process, and trained frontline staff can make an enormous difference in how a family experiences your institution during the worst moments of their lives.
Support members through caregiving, not just retirement. The financial planning needs of a caregiver are distinct from traditional retirement planning. Helping members understand the cost of long-term care, anticipate eldercare expenses, and protect themselves from financial abuse demonstrates value that goes beyond account management.
Offer resources for end-of-life planning. The gap between good intentions and actual preparation is striking: 64% of Americans believe having a will is important, but only 32% have one. Credit unions that help members close that gap, whether through partnerships, educational resources, or estate planning tools, create goodwill that outlasts any individual relationship.
Credit unions were built on a different premise than traditional banks: that members deserve more than transactions. The Great Wealth Transfer is, at its core, a test of that premise.
Families are going to need guidance, patience, and genuine support as they navigate one of the most financially and emotionally complex experiences of their lives. The institutions that show up for those moments with expertise and compassion are the ones that will earn the loyalty of an entirely new generation of members.
The window to build those relationships is now, while your existing members are still planning, still caregiving, and still making decisions about where their money will go. The credit unions that invest in this moment will become the trusted institution of choice for families across generations.
Connect with Homethrive to learn more.