Generational wealth transfer curves to trillions, but advisor retention remains limited
Over the next 25 years, more than $120 trillion in wealth will pass from one generation to the next. A Cerulli Associates study sheds light on a pivotal question for ultra-wealth clients, their heirs, and the professionals who guide them: will heirs keep the same wealth advisor after inheriting? The answer, for now, is a cautious no—though the reality is nuanced and varies by heiress or heir and the stage of life.
Small but meaningful retention, driven by habit and relationships
According to Cerulli’s survey of investors with at least $250,000 in financial assets, only 27% of potential beneficiaries—primarily widows and children—plan to keep their benefactor’s wealth advisor. The figure drops to 20% among those who have already inherited, suggesting that the very act of inheriting does not automatically translate into long-term continuity with the legacy advisor. The logic underpinning these decisions is subtle and multifaceted.
When Cerulli asked heirs why they would pursue or abandon the legacy advisor route, the responses revealed a blend of practical considerations: half said they already had their own advisor, and 28% cited not having a relationship with the benefactor’s advisor. Only 14% said they didn’t want to work with a financial advisor at all, and 10% indicated the legacy advisor did not meet their specific investment needs. Importantly, respondents could select multiple reasons, underscoring that the decision is rarely about a single factor.
John McKenna, a research analyst at Cerulli, notes that most inheritors are not starting from scratch as wealth-management outsiders. “Keep in mind, if the parents die in their 70s or 80s, the inheritor is between 40 and 60. In most of these cases, they have matured into wealth management clients. They have relationships, and they’re just going to be adding incrementally to their existing relationships rather than starting a new one with a legacy advisor,” he explains.
Benefactors see ambivalence about heirs’ advisor choices
The study also reveals ambivalence among benefactors about whether heirs should retain the same advisor. While a little over a quarter hoped the inheritors would keep the legacy relationship, more than half expressed uncertainty or left the decision to the beneficiaries. A minority—7%—did not want heirs to use the same advisor, with the most common explanation being that the adults already had no prior relationship. This divergence in expectations points to a broader communication gap in family wealth planning.
The core challenge: family conversations about wealth and care
Scott Smith, Cerulli’s senior director of advice relationships, frames the issue as a communication problem as much as a financial one. “The crux of the problem is that clients are often reluctant to discuss their estate plans with their families,” he says. Among high-net-worth investors—those with more than $5 million in financial assets—about 20% indicated they intended heirs would learn of wealth specifics after the benefactor’s death. In reality, 34% said such details were only learned after the benefactor’s death, a sign that crucial information is slipping through the cracks before it matters most.
Smith stresses that advisers should not wait for a family crisis to act. “Benefactors believe they will talk to their next generation before they die,” he notes. “But when we ask the next generation, these conversations didn’t happen.” The advisor’s role, then, becomes not only managing assets but bridging the gap between generations. Reinforcing early involvement helps ensure survivors have a stable financial footing and reduces panic when the time comes.
Practical steps for families and advisers
Experts suggest concrete steps to improve outcomes: start estate-planning conversations early, document key goals and values, and ensure the next generation has access to a trusted, independent advisor who can coordinate with the legacy team. The aim isn’t merely asset retention, but a smoother transition that protects families from costly errors and emotional stress during times of loss.
As wealth continues to shift across generations, the Cerulli findings underscore a simple but powerful truth: clear, proactive dialogue between benefactors, heirs, and advisers can preserve family wealth and support responsible stewardship for decades to come.
