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Trusted Advisor Transition

The rising generation stands to inherit significant wealth, and families are spending much effort and expense to ensure that they are well prepared to become effective custodians of that wealth. However, it’s important for families to also consider the services required to help manage that wealth: advisors.

In any family, at some point in time, the wealth will shift from one generation to another. When someone inherits wealth, it becomes ‘theirs’. This contrasts with advisor relationships which ‘belonged’ to their parents, and can be much harder to fully transition. Many advisors are older and cannot connect to younger heirs. On the other side of that equation, some wealth inheritors are uncomfortable dealing with someone who was their parents’ advisor for many years, and want a fresh start to help them individuate and put their stamp on things.

The advisor community is well aware of this impending wealth transition, and are developing their own strategies to deal with it. Some have developed their own succession plans, or are selling out to larger firms. Like their clients, they too need education in shifting generational trends and how to build deeper and multigenerational connections to their client families to reduce the risk of losing the family’s business when the wealth transitions.

Consider This: Have you reviewed the relationships between your family and its trusted advisors (lawyers, accountants, wealth managers, family advisors)? Have you had 3-way discussions (two gens of family + advisors) to consider the impact of wealth transition in the advisor relationship context?

Original articles:

[Reprinted with permission]

Actionable Generational Wealth Succession

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