An estimated $124 trillion is projected to pass between generations of American households through 2048, and reshaping how families manage fortunes.
Roughly $18 trillion of that sum is projected to go to charity rather than heirs, according to estimates from Cerulli Associates.
Shifting Objectives in Multi-Million Dollar Estates
That wealth transfer is altering how wealthy families approach estate planning. Conversations that once focused strictly on percentage distributions among children and grandchildren now frequently center on a different objective: determining what the capital is meant to achieve once it’s gone.
At J.P. Morgan Private Bank in Connecticut, Justin Nelson serves as Managing Director and Head of the Asset Management and Financial Principals Coverage Team, and he has noted that clients increasingly view philanthropy as an extension of their estate plans. Having joined J.P. Having joined J.P. Morgan in 1998, Nelson has spent nearly three decades helping families navigate wealth transfers, observing that giving and inheriting rarely stay separate anymore.
Values-Driven Planning Beyond Daily Living Standards
For families who have already provided for their children and grandchildren, reaching a point where an extra few million dollars would not change how their kids actually live often opens the door for deliberate, values-driven planning.
Nelson explained that the best estate plans go beyond transferring assets efficiently to reflect a household’s broader priorities.
Private Foundations Versus Donor-Advised Funds
Structuring these philanthropic efforts often requires choosing between a private foundation and a donor-advised fund, two vehicles that cater to distinctly different preferences. A private foundation suits a family that wants control, governance, and a lasting institution built around its own board.
Conversely, a donor-advised fund offers much of the experience of having a charitable foundation without all of the administration. While a sponsoring entity manages the day-to-day administration, contributors can deposit assets, claim applicable tax deductions, and disburse grants at their own pace.
Surging Grants and Non-Cash Contributions
The simplicity of donor-advised funds has fueled rapid expansion. During fiscal year 2025, National Philanthropic Trust documented a 20% increase in grants recommended through its donor-advised funds, resulting in the distribution of upward of $6.6 billion to more than 48,000 charitable entities.
Nelson pointed out that treating charitable giving as a year-end afterthought remains a frequent missed opportunity. The most tax-efficient charitable gift is often not a check.
Instead, donating appreciated securities directly to a charity allows donors to support causes while bypassing the capital gains tax a sale would otherwise trigger. Data from Fidelity Charitable’s 2025 Giving Report reveals that this approach has transformed donation channels: non-cash assets made up 67% of contributions to its donor-advised funds in 2024, with publicly traded securities alone accounting for 57%.
Integrating Liquidity Events With Tax Strategies
Large liquidity events—such as a business sale, a concentrated stock position, or an unusually high-income year—frequently create a window to accelerate giving and maximize tax benefits without an obligation to hand every dollar to a charity right away. Nelson emphasizes coordinating these timing decisions alongside the broader investment strategy and estate plan rather than letting them operate independently.
Nelson applies that integrated approach to his own commitments, having served on the board of the Breast Cancer Alliance since 2016. Ultimately, he advises clients that the correct structure relies on their own tax and estate circumstances, requiring consultation with their tax and legal advisors before any final design is implemented.
