Advisors report clients have greater family engagement around generational wealth transfer

ST. LOUIS, March 20, 2024 – A majority of financial advisors surveyed (89%) report clients have a wealth transfer plan in place and many financial advisors say clients are engaging their families in these discussions, according to new research from Edward Jones and Morning Consult. In fact, nearly two-thirds (65%) of financial advisors say clients are bringing their children or parents to meetings to discuss their wealth transfer plans.

“It’s refreshing to see clients engaging their families in these conversations, as earlier involvement creates a better sense of trust and intentionality before the transfer takes place,” said David Chubak, head of the U.S. Business Unit and Branch Development at Edward Jones. “But most importantly, it gives family members comfort knowing they have a trusted financial advisor in their corner to help them navigate the financial, emotional and personal aspects that come in times of loss and change."

Financial advisors speak with their clients about generational wealth on a regular basis

To prepare for the complexities and sensitivities around wealth transfer, financial advisors serve as accountability partners for their clients by establishing regular check-ins. In fact, 77% of financial advisors surveyed say they speak to their clients at least quarterly about their wealth transfer plans.

Ninety-eight percent of financial advisors in the study say they also help clients set requirements around how their wealth is transferred, the most common being the allocation of funds (68%), using their financial advisor for oversight (65%) and obligations to care for a loved one, property or asset (54%).

“As financial advisors, we know life is unpredictable. That means we need to be helping our clients update their wealth transfer strategies to reflect their life changes,” said David Tam, an Edward Jones Financial Advisor in San Diego, CA. “This shouldn’t be viewed as a one-time conversation and should be revisited regularly to help address the clients’ most important priorities.”

What financial advisors discuss with clients around wealth transfer has shifted

Financial advisors acknowledge that their conversations with clients around inheritance have shifted in the past five years, and where clients choose to focus varies. Thirty-six percent of financial advisors report their client conversations have shifted in recent years to focus more on establishing and growing wealth to use during their lifetime rather than passing on or giving away their wealth. For those who are looking to create generational wealth, 35% of financial advisors say their clients are more focused than they were five years ago on passing wealth on to their children, while 14% say clients are now more focused on passing it onto their grandchildren.

Clients remain focused on preparing for retirement

When asked what their clients value most when they receive an inheritance, financial advisors were most likely to rank preparing for retirement as their clients' top priority (21% of financial advisors), followed by clients passing on wealth to children (18%) and maintaining their own lifestyle (17%).

“It’s extremely important to listen and understand how clients are considering using their inheritance as it can alter their financial strategies and add to their wants, needs and wishes. With a more intimate understanding of a client's life, their values, goals, aspirations, and risk, we can provide more comprehensive advice and meet more of their wealth management goals," added Tam.

 

Methodology

This survey was conducted by global data intelligence company Morning Consult among a national sample of 200 financial advisors from January 5-6, 2024.