The Next Wealth Generation

Ever notice there are no luggage racks or trailer hitches on a Hearst. The reason is obvious: “you can’t take it with you.” So, all the years to wealth building is eventually passed from one generation to the next. 

According to Investment News Data, about 66% of those soon to inherit from their parents plan on getting a new financial advisor to handle the assets. Fidelity Investments research reinforces the same. Without a relationship, children heirs don’t have much appreciation or corresponding interest for working with their parents’ advisor(s) even though they helped their parents grow their wealth which is now to be inherited. 

After the death of the first parent, usually the family wealth is concentrated for the surviving spouse. If there isn’t a surviving spouse, then wealth gets passed to those so designated. Blended families may have special trusts set up to protect certain interests. In any case, the person the family turns to for assistance is usually the attorney who drafted the family trust and wills. Everyone experiences the attorney as the one who will guide them through the maze of legal hoops to get things transferred to the appropriate heirs in the most efficient and tax wise manner. The attorney usually has the primary role. 

The financial advisor is an important player in this life and death drama also. Identifying assets and the beneficiaries of financial contracts (life insurance, retirement accounts, and the like) is essential and not always known to the attorney. If there were more than one advisor working with the deceased, it can get tricky for the family as they attempt to figure all things out. 

When families experience the attorney and financial advisor working together as a team, it brings a calm to family members during troubled times. In addition, the working relationship gives cause for family members to consider keeping the “team” together for their future. 

If heirs plan 66% of the time to get rid of the parents’ advisor (2 out of every 3 cases), then imagine 66% of your business fading away. Imagine next what your business would look like if the change rate was only 1 out of every 3 because of your strong working relationship with the attorney. Not only would you preserve most of your business, but also grow your business with new opportunities when capturing the assets of the children as well. 

Would you like to be positioned to continue family legacies and work with heirs soon to inherit many of the assets you now manage? Advisor Centric Trusts can help. ACTrusts will connect you with an attorney that will engage your clients with you actively involved in the estate planning process. 

Start by letting your clients know you are the advisor who is watching out for of all their financial needs. Follow up by referring the clients to get an estate plan if they don’t have one. Be the one to make the introduction to an attorney who will customize their legal documents to reflect their desires and work with you when the time comes to help their children. Provide additional value by securing them a significant discount on their legal work because of your strong working relationship with the attorney.