Most Heirs Do Not Retain Their Parents’ Wealth Advisors, Cerulli Study Finds

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

A critical factor behind low advisor retention is the reluctance of clients to discuss estate plans with their families. Cerulli’s research highlights that 20% of investors with over $5 million in assets intend for heirs to learn about their wealth only posthumously. This reticence is reflected in the experiences of heirs, 34% of whom reported receiving inheritance information only after their benefactor’s death. !-- wp:paragraph -->

“Benefactors believe they will talk to their next generation before they die, but these conversations often don’t happen,” said Scott Smith, senior director of advice relationships at Cerulli.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

Interestingly, benefactors themselves appear largely indifferent about whether heirs retain their wealth advisors. While a little over one-quarter wish their heirs to maintain continuity, more than half remain undecided or defer the choice to their beneficiaries. A small minority (7%) prefer heirs not use their advisors, frequently due to a lack of established relationships. !-- wp:paragraph -->

Communication Gaps Hamper Advisor Retention

A critical factor behind low advisor retention is the reluctance of clients to discuss estate plans with their families. Cerulli’s research highlights that 20% of investors with over $5 million in assets intend for heirs to learn about their wealth only posthumously. This reticence is reflected in the experiences of heirs, 34% of whom reported receiving inheritance information only after their benefactor’s death. !-- wp:paragraph -->

“Benefactors believe they will talk to their next generation before they die, but these conversations often don’t happen,” said Scott Smith, senior director of advice relationships at Cerulli.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

Cerulli’s survey of investors holding at least $250,000 in financial assets reveals that only 27% of future beneficiaries plan to retain their benefactors’ wealth advisors. Among those who have already inherited wealth, the retention rate drops further to 20%. !-- wp:paragraph --> Rather than rejecting professional advice altogether, most heirs transition to advisors they already know. Half of respondents who chose different advisors cited existing advisory relationships, while 28% reported no prior relationship with their benefactors’ advisors. Only 14% expressed a preference to forego financial advisors entirely, and 10% felt the original advisor did not meet their specific investment requirements. !-- wp:paragraph -->

“If the parents die in their 70s or 80s, the inheritor is between 40 and 60,” explained John McKenna, research analyst at Cerulli. “In most cases, they have matured into wealth management clients and are simply augmenting existing relationships rather than establishing new ones with legacy advisors.”

Benefactors Show Ambivalence Over Heirs’ Advisor Choices

Interestingly, benefactors themselves appear largely indifferent about whether heirs retain their wealth advisors. While a little over one-quarter wish their heirs to maintain continuity, more than half remain undecided or defer the choice to their beneficiaries. A small minority (7%) prefer heirs not use their advisors, frequently due to a lack of established relationships. !-- wp:paragraph -->

Communication Gaps Hamper Advisor Retention

A critical factor behind low advisor retention is the reluctance of clients to discuss estate plans with their families. Cerulli’s research highlights that 20% of investors with over $5 million in assets intend for heirs to learn about their wealth only posthumously. This reticence is reflected in the experiences of heirs, 34% of whom reported receiving inheritance information only after their benefactor’s death. !-- wp:paragraph -->

“Benefactors believe they will talk to their next generation before they die, but these conversations often don’t happen,” said Scott Smith, senior director of advice relationships at Cerulli.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

Cerulli’s survey of investors holding at least $250,000 in financial assets reveals that only 27% of future beneficiaries plan to retain their benefactors’ wealth advisors. Among those who have already inherited wealth, the retention rate drops further to 20%. !-- wp:paragraph --> Rather than rejecting professional advice altogether, most heirs transition to advisors they already know. Half of respondents who chose different advisors cited existing advisory relationships, while 28% reported no prior relationship with their benefactors’ advisors. Only 14% expressed a preference to forego financial advisors entirely, and 10% felt the original advisor did not meet their specific investment requirements. !-- wp:paragraph -->

“If the parents die in their 70s or 80s, the inheritor is between 40 and 60,” explained John McKenna, research analyst at Cerulli. “In most cases, they have matured into wealth management clients and are simply augmenting existing relationships rather than establishing new ones with legacy advisors.”

Benefactors Show Ambivalence Over Heirs’ Advisor Choices

Interestingly, benefactors themselves appear largely indifferent about whether heirs retain their wealth advisors. While a little over one-quarter wish their heirs to maintain continuity, more than half remain undecided or defer the choice to their beneficiaries. A small minority (7%) prefer heirs not use their advisors, frequently due to a lack of established relationships. !-- wp:paragraph -->

Communication Gaps Hamper Advisor Retention

A critical factor behind low advisor retention is the reluctance of clients to discuss estate plans with their families. Cerulli’s research highlights that 20% of investors with over $5 million in assets intend for heirs to learn about their wealth only posthumously. This reticence is reflected in the experiences of heirs, 34% of whom reported receiving inheritance information only after their benefactor’s death. !-- wp:paragraph -->

“Benefactors believe they will talk to their next generation before they die, but these conversations often don’t happen,” said Scott Smith, senior director of advice relationships at Cerulli.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

Over the next quarter-century, an unprecedented $120 trillion in wealth is projected to transfer from one generation to the next, according to a recent study by Cerulli Associates. This massive shift primarily involves high-net-worth families passing assets to widows and children, reshaping the landscape of wealth management. !-- wp:paragraph -->

Majority of Heirs Opt for Different Financial Advisors

Cerulli’s survey of investors holding at least $250,000 in financial assets reveals that only 27% of future beneficiaries plan to retain their benefactors’ wealth advisors. Among those who have already inherited wealth, the retention rate drops further to 20%. !-- wp:paragraph --> Rather than rejecting professional advice altogether, most heirs transition to advisors they already know. Half of respondents who chose different advisors cited existing advisory relationships, while 28% reported no prior relationship with their benefactors’ advisors. Only 14% expressed a preference to forego financial advisors entirely, and 10% felt the original advisor did not meet their specific investment requirements. !-- wp:paragraph -->

“If the parents die in their 70s or 80s, the inheritor is between 40 and 60,” explained John McKenna, research analyst at Cerulli. “In most cases, they have matured into wealth management clients and are simply augmenting existing relationships rather than establishing new ones with legacy advisors.”

Benefactors Show Ambivalence Over Heirs’ Advisor Choices

Interestingly, benefactors themselves appear largely indifferent about whether heirs retain their wealth advisors. While a little over one-quarter wish their heirs to maintain continuity, more than half remain undecided or defer the choice to their beneficiaries. A small minority (7%) prefer heirs not use their advisors, frequently due to a lack of established relationships. !-- wp:paragraph -->

Communication Gaps Hamper Advisor Retention

A critical factor behind low advisor retention is the reluctance of clients to discuss estate plans with their families. Cerulli’s research highlights that 20% of investors with over $5 million in assets intend for heirs to learn about their wealth only posthumously. This reticence is reflected in the experiences of heirs, 34% of whom reported receiving inheritance information only after their benefactor’s death. !-- wp:paragraph -->

“Benefactors believe they will talk to their next generation before they die, but these conversations often don’t happen,” said Scott Smith, senior director of advice relationships at Cerulli.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.

Massive Wealth Transfer Underway: $120 Trillion Expected by 2050

Over the next quarter-century, an unprecedented $120 trillion in wealth is projected to transfer from one generation to the next, according to a recent study by Cerulli Associates. This massive shift primarily involves high-net-worth families passing assets to widows and children, reshaping the landscape of wealth management. !-- wp:paragraph -->

Majority of Heirs Opt for Different Financial Advisors

Cerulli’s survey of investors holding at least $250,000 in financial assets reveals that only 27% of future beneficiaries plan to retain their benefactors’ wealth advisors. Among those who have already inherited wealth, the retention rate drops further to 20%. !-- wp:paragraph --> Rather than rejecting professional advice altogether, most heirs transition to advisors they already know. Half of respondents who chose different advisors cited existing advisory relationships, while 28% reported no prior relationship with their benefactors’ advisors. Only 14% expressed a preference to forego financial advisors entirely, and 10% felt the original advisor did not meet their specific investment requirements. !-- wp:paragraph -->

“If the parents die in their 70s or 80s, the inheritor is between 40 and 60,” explained John McKenna, research analyst at Cerulli. “In most cases, they have matured into wealth management clients and are simply augmenting existing relationships rather than establishing new ones with legacy advisors.”

Benefactors Show Ambivalence Over Heirs’ Advisor Choices

Interestingly, benefactors themselves appear largely indifferent about whether heirs retain their wealth advisors. While a little over one-quarter wish their heirs to maintain continuity, more than half remain undecided or defer the choice to their beneficiaries. A small minority (7%) prefer heirs not use their advisors, frequently due to a lack of established relationships. !-- wp:paragraph -->

Communication Gaps Hamper Advisor Retention

A critical factor behind low advisor retention is the reluctance of clients to discuss estate plans with their families. Cerulli’s research highlights that 20% of investors with over $5 million in assets intend for heirs to learn about their wealth only posthumously. This reticence is reflected in the experiences of heirs, 34% of whom reported receiving inheritance information only after their benefactor’s death. !-- wp:paragraph -->

“Benefactors believe they will talk to their next generation before they die, but these conversations often don’t happen,” said Scott Smith, senior director of advice relationships at Cerulli.

This communication gap limits advisors’ opportunities to engage with the next generation early, which is crucial for smooth transitions and sustained client relationships. !-- wp:paragraph -->

Advisors Urged to Facilitate Early Family Engagement

Advisors are encouraged to prompt clients to initiate estate discussions proactively. Scott Smith emphasizes the importance of preparing heirs well in advance to avoid panic and ensure continuity. !-- wp:paragraph -->

“It’s not just about retaining assets; it’s about making it easier for the survivor when you pass,” Smith noted. “Encouraging early involvement helps heirs have their feet securely on the ground.”

FinOracleAI — Market View

The Cerulli findings underscore a fundamental challenge in wealth management: bridging generational divides to maintain advisory relationships amid a historic wealth transfer. As inheritors often possess established financial advisors, wealth managers serving elder clients must prioritize succession planning and family engagement to secure long-term client retention. !-- wp:paragraph -->

• Opportunities: Advisors can differentiate by facilitating early estate discussions and integrating heirs into wealth planning.
• Risks: Failure to engage heirs risks asset attrition as beneficiaries default to their own advisors or self-directed options.
• Benefactors’ ambivalence provides a window for proactive advisors to influence future client decisions.
• Digital and self-directed platforms remain secondary to personalized advisory relationships among heirs.

Impact: This study signals a moderate negative impact on legacy advisor retention but highlights actionable strategies to improve client transition and asset continuity.