Wealth Transfer: What do the Children Want?

With the "great wealth transfer" underway, surveys have focused on the children of high- net-worth families and their attitudes about wealth. While findings have revealed that Millennial and Gen Z beneficiaries are less interested in the high level of returns their parents looked to achieve, doubts have been raised as to whether this would continue to be the case, if significant volatility or a market downturn were to occur.

That reality is now here and it's time to find out. In a COVID-19 world, Millennial and Gen Z client beneficiaries may now be just as likely to pursue a more aggressive, returns- based approach to investing, as has been their preference for more purpose-driven, socially and environmentally conscious (ESG) investing.

The significance of this wealth transfer issue is also shining a light on another major concern: determining the strength of the wealth advisor's relationship with the Millennial and Gen Z children. Since this relationship typically determines whether assets will be retained once wealth transfer takes place, it's critical for wealth managers to examine this dynamic.

In the face of wealth transfer, ensuring "relationship alpha" with a new generation of clients is essential.


Conducting Client Audits can help inform that roadmap.

Client audits gather critical insights on wealth management practices and complement the dialogue advisors have with their clients. While a wealth advisor's relationship with a client can be very personal, problems related to working with the children are often not communicated, particularly when a long-standing relationship may rest in the balance.

Our client audits are designed to identify these types of concerns. Through one-on-one interviews conducted by our skilled interviewers, we give UHNW clients the opportunity to be completely candid on a wide range of issues that can improve relationships and satisfy wealth transfer issues. This includes identifying the investing capabilities clients want, service and reporting problems that need to be changed, and competitor offerings that clients are considering.

Constructive and cost-effective, our client audits are designed to gather intelligence and provide you input to make informed business adjustments. More importantly, they are designed to maintain your most important asset: the client relationship.

Reach out to us. We're here to help.