Most heirs retain, not replace, the family wealth advisor
As Baby Boomers and their successors prepare for a generational wealth transfer, a Cerulli Associates study sheds light on how inheritors plan to manage, or reshape, the advisory relationships they inherit. Over the next 25 years, more than $120 trillion is expected to flow to heirs, a wave of wealth that could redefine how financial advice is structured within families.
Key finding: a minority plan to keep the legacy advisor
According to Cerulli’s survey of investors with at least $250,000 in financial assets, only 27% of future beneficiaries—primarily widows and children—expect to keep their benefactor’s wealth advisor. The share dips to 20% among those who have already inherited their riches. This challenges a common assumption that heirs always inherit a pre-established advisory relationship as a default.
Why many heirs stay the course (or not)
Despite the prevalence of existing relationships, most heirs aren’t rejecting advisors in favor of self-directed investing or purely digital products. When asked why some chose different paths, half of respondents said they already had their own advisor, and 28% cited a lack of a relationship with the benefactor’s advisor as a reason. Only 14% said they did not want to work with a financial advisor, and 10% said the advisor didn’t meet their specific investment needs. Respondents could select multiple reasons, underscoring a nuanced landscape rather than a simple “keep or dump” dichotomy.
The age angle: timing matters in family wealth dynamics
John McKenna, a Cerulli research analyst, points out a lifecycle reality: when parents exit the picture in their 70s or 80s, heirs are typically in their 40s to 60s. “In most of these cases, they have matured into wealth-management clients. They’re adding incrementally to existing relationships rather than starting anew with a legacy advisor,” he explains. This dynamic helps explain why the share of heirs pursuing the original advisor remains modest despite overall satisfaction with service.
How benefactors feel about their heirs’ choices
Benefactors who intend to pass their wealth down are generally ambivalent about whether heirs use the same advisors. While a little over a quarter wish their inheritors would keep the advisor, more than half are unsure or say it’s up to the beneficiaries. Seven percent prefer that heirs not use the same advisor, with the main reason being that the parties didn’t already have a relationship. This ambivalence highlights a gap: even satisfied benefactors may not actively guide heirs to maintain the same advisory team.
Communication gaps and the advisor’s role
Scott Smith, Cerulli’s senior director of advice relationships, identifies a central obstacle: family members often lack crucial conversations about estate plans. Even among the very wealthy, 20% intend heirs will learn about wealth after the benefactor’s death, and 34% report being told these details only after the benefactor dies. The risk is clear: delayed conversations can leave heirs unprepared to manage complex portfolios when a transition occurs.
Advice for advisors: engage early and normalize discussions
Smith emphasizes proactive guidance for advisors: encourage clients to involve the next generation long before a potential transfer. “Reinforce with the primary contact that it’s important for the survivor to get involved early on so they have their feet securely on the ground and they aren’t panicking when the time comes,” he says. The goal isn’t merely asset retention; it’s smoother transitions and stronger financial footing for survivors.
Ultimately, the Cerulli study suggests a nuanced path forward for families and their wealth teams. While a minority of heirs will retain the original advisor, many will craft their own advisory relationships. For advisors, the opportunity lies in initiating conversations early, building trust across generations, and showing how professional guidance can support a seamless, informed transition when the time comes.
