Groundlearn / Glossary / Wealth transfer
Wealth transfer
A CFA term, defined in plain English with the distinction examiners test.
What it means
Moving assets to the next generation or to charity, structured for tax efficiency and for the family’s intentions.
The exam angle
Lifetime gifting transfers future growth out of the estate. The trade-off is control, and it is usually the real obstacle rather than the tax.
Where it appears in the syllabus
- Private Wealth pathwayCFA Level III · exam weight 30–35% · Goals-based planning, tax efficiency, human capital, wealth transfer.
Related terms
- Asset locationDeciding which account type holds which asset, so that heavily taxed returns sit in tax-sheltered accounts.
- Goals-based investingStructuring wealth into separate portfolios for separate objectives, each with its own horizon and risk tolerance,…
- Human capitalThe present value of an individual’s expected future earnings, treated as an asset alongside their financial wealth.
- Tax-loss harvestingRealising losses deliberately to offset gains elsewhere, while keeping the portfolio’s economic exposure broadly intact.
Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
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