Wealth transfer refers to the process of passing assets, money, or property from one individual or entity to another, often occurring during events like inheritance or gifting. This transfer can happen between family members, friends, or through legal mechanisms such as trusts and estates. The concept is significant in financial planning, as it can impact taxes and the distribution of wealth across generations. Understanding estate planning and tax implications is essential for individuals looking to manage their wealth effectively and ensure that their assets are distributed according to their wishes.