Financial advisers today face a significant challenge: helping their clients move from avoidance to activity in planning for the transfer of their wealth—and retaining the assets when that wealth changes hands.
Our research uncovers why clients are hesitant to start planning to transfer wealth, whether that be to a spouse or to the next generation, and what advisers can do to engage their clients in planning for the future.
Many clients put off thinking about wealth transfer plans until an emergency forces the conversation. But by then, it may be too late. Planning early allows time for:
Having a clear understanding of client objectives and family values to personalise the plan
Building a relationship with the rest of the family by including them up front
Developing financial literacy in the next generations, to ensure that the family is prepared to receive the inheritance.
Provide additional resources to help clients build their family’s collective financial knowledge – from raising financially intelligent children, to saving for university, to retirement and estate planning.
1 “The MetLife Study of Inheritance and Wealth Transfer to Baby Boomers,” Boston College Center for Retirement Research, December 2010.
2 “The ‘Greater’ Wealth Transfer: Capitalizing on the Intergenerational Shift in Wealth,” Accenture, 2012.
3 “Why the $41 Trillion Wealth Transfer Estimate is Still Valid,” Planned Giving Design Center, May 18, 2011.
4 “A Golden Age of Philanthropy Still Beckons: National Wealth Transfer and Potential for Philanthropy Technical Report: Boston College Center on Wealth and Philanthropy, May 28, 2014.
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