Have you ever wondered what happens to a family’s wealth when it passes from one generation to the next? It’s a question that feels almost cinematic, like a scene from a drama where fortunes are won or lost. Yet, the reality is far less glamorous and far more practical: only 27% of heirs planning to inherit wealth intend to stick with their parents’ financial advisor. Even more striking, that number drops to 20% for those who’ve already received their inheritance. This isn’t just a statistic—it’s a wake-up call for families and advisors alike. So, why are heirs so quick to part ways with the professionals who helped build their family’s fortune?
The Great Wealth Transfer: A Shifting Landscape
Over the next few decades, an estimated $120 trillion will change hands as older generations pass their wealth to their heirs—primarily widows and children. This monumental shift, often called the great wealth transfer, is reshaping how families think about money, legacy, and the professionals they trust to manage it. But here’s the kicker: most heirs aren’t interested in continuing the relationship with the advisor who guided their parents’ financial journey. It’s not about dissatisfaction with the advisor’s performance—most benefactors report being happy with their advisors. So, what’s driving this disconnect?
Why Heirs Walk Away
Let’s get real for a second: inheriting wealth isn’t just about getting a big check. It’s a deeply personal transition, often tied to grief, new responsibilities, and a shift in identity. When heirs decide to ditch their parents’ wealth advisor, it’s rarely about chasing the latest robo-advisor or DIY investing app. According to recent research, 50% of heirs already have their own financial advisor by the time they inherit. Another 28% say they simply don’t have a relationship with their parents’ advisor. Only 14% outright reject the idea of working with any advisor, and just 10% feel the advisor didn’t meet their specific needs.
“Most heirs aren’t rejecting advisors altogether—they’re just sticking with the ones they already know and trust.”
– Financial planning expert
Think about it: if your parents pass away in their 70s or 80s, you’re likely in your 40s or 50s, maybe even 60s. By that point, you’ve probably built your own financial life, complete with an advisor you vibe with. Starting fresh with someone new, even if they managed your parents’ portfolio like a rock star, can feel like trying to join a conversation halfway through. It’s not impossible, but it’s not exactly appealing either.
The Advisor’s Missed Opportunity
Here’s where things get interesting. The biggest threat to wealth advisors isn’t technology or self-directed investing—it’s their failure to connect with the next generation. I’ve seen this firsthand in conversations with friends who inherited significant sums. They didn’t dislike their parents’ advisor; they just didn’t know them. No coffee chats, no introductory emails, no effort to build a bridge. Advisors often focus so much on their primary client—the benefactor—that they overlook the heirs who will eventually control the wealth.
- Lack of relationship: Heirs often have no personal connection to the advisor, making it easier to walk away.
- Existing trust: Many heirs already have their own advisor, someone who understands their goals and values.
- Mismatched needs: Younger generations may prioritize different investment strategies, like sustainable investing or digital assets.
It’s not that advisors are doing a bad job. In fact, most benefactors say they’re satisfied with their advisor’s performance. But satisfaction doesn’t automatically translate to loyalty across generations. Advisors need to be proactive, not reactive, in building those relationships early.
Benefactors’ Ambivalence: A Surprising Twist
Here’s where the plot thickens: benefactors themselves aren’t exactly championing their advisors to their heirs. Only about 25% of wealthy individuals say they want their kids or spouse to stick with their advisor. More than half are either unsure or leave it entirely up to their heirs. And get this—7% actively don’t want their heirs to use their advisor, often because there’s no existing relationship. Isn’t that wild? You’d think someone who trusts their advisor would be shouting their praises from the rooftops, but that’s not the case.
Why the indifference? For one, many benefactors are hesitant to discuss their estate plans with their families. Among those with over $5 million in assets, 20% plan to keep their heirs in the dark until after they’re gone. And when you ask the next generation, 34% say they only learned about the wealth after their benefactor’s death. That’s a recipe for confusion, mistrust, and missed opportunities.
“Families often avoid tough money talks, leaving heirs unprepared and advisors out of the loop.”
– Wealth management analyst
It’s like planning a big family reunion but forgetting to send out the invites. Without those conversations, heirs are left scrambling, and advisors are left playing catch-up. Perhaps the most fascinating part is how this reflects a broader human tendency to avoid uncomfortable topics, even when they’re critical to a family’s future.
Breaking the Cycle: Building Bridges Early
So, how do we fix this? The answer lies in proactive communication. Advisors need to encourage their clients to bring their heirs into the fold long before the wealth transfer happens. This isn’t just about securing the bag—it’s about making the transition smoother for everyone involved. Imagine a widow or child suddenly inheriting millions without a clue about how it’s managed. That’s not just stressful; it’s a setup for mistakes.
Advisors can take the lead by:
- Initiating family meetings: Invite heirs to discussions about the family’s financial goals and values.
- Building personal connections: Get to know the heirs’ priorities, whether it’s philanthropy, real estate, or tech investments.
- Educating the next generation: Offer workshops or one-on-one sessions to demystify wealth management.
These steps aren’t just good business—they’re about creating a sense of continuity and trust. In my experience, people are more likely to stick with someone they feel understands them, not just their money.
The Emotional Side of Wealth Transfer
Let’s not kid ourselves—money isn’t just numbers on a spreadsheet. It’s tied to family dynamics, grief, and sometimes even resentment. When heirs inherit wealth, they’re not just inheriting assets; they’re inheriting a legacy. That can feel like a lot of pressure, especially if they’re not prepared. Advisors who only focus on the financial side are missing half the picture.
Take Sarah, a hypothetical 45-year-old who inherited her parents’ estate. She’s got her own financial advisor, someone she’s worked with for a decade. Her parents’ advisor, while competent, never reached out to her. When the time came to manage the inheritance, Sarah stuck with her own advisor—not because the other guy was bad, but because he was a stranger. Stories like this play out every day, and they highlight the importance of building emotional trust alongside financial expertise.
What Families Can Do to Prepare
Families aren’t off the hook here. If you’re a benefactor, it’s on you to start those tough conversations. I know, talking about money and death isn’t exactly a fun dinner table topic, but it’s necessary. Here’s a quick roadmap to get started:
| Action | Purpose | Impact |
| Hold a family meeting | Discuss estate plans openly | Reduces confusion for heirs |
| Introduce heirs to advisors | Build trust early | Increases advisor retention |
| Share financial values | Align family goals | Creates a unified legacy |
These steps might feel awkward at first, but they’re a gift to your heirs. They provide clarity, reduce stress, and set the stage for a smoother transition. Plus, they give your advisor a chance to shine before the big moment arrives.
The Bigger Picture: Trust and Legacy
At its core, this issue isn’t just about money—it’s about trust and legacy. Heirs want to feel confident that the person managing their wealth understands their values, not just their parents’. Advisors, meanwhile, need to see heirs as more than an extension of their clients—they’re individuals with their own dreams and priorities. And families? They need to break the silence around wealth and start talking.
Maybe the most interesting aspect is how this reflects broader human behavior. We avoid tough conversations, assume things will work out, and then wonder why things fall apart. By fostering open communication and building relationships early, families and advisors can turn the great wealth transfer into an opportunity, not a challenge.
“It’s not just about retaining assets—it’s about making life easier for your heirs when you’re gone.”
– Wealth management expert
So, what’s the takeaway? Whether you’re an heir, a benefactor, or an advisor, the key is to start building those bridges now. Money may come and go, but relationships—when nurtured—can last a lifetime.
