The Great Wealth Transfer: What Financial Advisors Should Keep In Mind

The large holdings your wealthy boomer clients have accumulated have come in large part thanks to your hard work. These portfolios are something to be proud of – but are at significant risk of vanishing from your practice when your older clients pass on their assets to family members, charities, or other beneficiaries. 

01 Invest in Digital Capabilities 

With the right digital capabilities in place, you can step up and play a key role in quarterbacking all your clients’ wealth transfer processes. Recent advances in technology like AI and automation have made gaining these capabilities – and adding trust and estate administration services to your practice – easier than ever. 

Minimising administrative burdens via document automation is one of the best ways you can streamline estate proceedings while simultaneously showing younger clients that you are keeping up with the times. For example, one of the duties of every fiduciary administering a trust or estate is to inform beneficiaries of the current value of the account. Instead of asking family members to collect and submit monthly bank and brokerage statements, you can rely on a digital wealth management solution to automatically pull all necessary data and present it in intuitive dashboards, thereby dramatically reducing the number of hours billable to an estate.

Having the right tools and technologies in place is a game changer for everyone: your firm, your advisors, your existing clients, and your future clients. Make it a priority to invest in technologies that make it easier for all stakeholders to access and manage critical data and documents, and do not forget that mobile experiences matter – especially to younger clients. 

02 Rely on Digitally-Savvy Advisors

Today’s wealthy individuals of all ages expect their financial service providers to provide better digital experiences than ever. Successful financial advisors know it – and are looking for ways to meet such expectations. According to a report from Deloitte, a survey found that 51% of financial advisors were considering switching to a firm with better tech tools.

As the leader of a financial advisory firm, it is imperative to take a step back and realign your business values around meeting the goals of the next generation. Focus on continuously evaluating your business processes, communication channels, engagement and service models, and human resources. 

Your most digitally-savvy colleagues – likely members of the same generation as your younger clients – will likely be a key asset here. Involve them early and often, and consider bringing in more team members like them to ensure that you have the right staff and advisors in place to effectively engage with younger clients.

03 Involve the Entire Family in Discussions

An intergenerational continuity plan, including a detailed roadmap for managing and transferring wealth that aligns with a family’s goals and objectives, often plays a key role in ensuring smooth changes in intrafamilial wealth ownership.

Transparent family communications are among advisors’ most helpful tools when it comes to creating and executing such a plan. Properly conducted family meetings create a platform for family members to participate in discussions about shared goals and values, transfer strategies, legacy and estate management, family assets and wealth, and more.

The Great Wealth Transfer is already underway. With it comes significant opportunities for you to put your firm at the centre of your clients’ estate administration process and highlight your associated digital capabilities. Make the most of these opportunities!