Navigating the Great Wealth Transfer

What You Need to Know

Putting plans in place takes time.
Talking about passions works better than talking about death.
Communication will make a plan work better.

Over the course of the next 22 years, more than $84 trillion in wealth will be changing hands to the next generation, according to Cerulli Associates data.

Yet, the Cerulli study shows, nearly half of investors with at least $1 million have no wealth transfer plan in place.

On top of that, only 13% of investors will use the same financial professional as their parents.

I get it. Having money conversations with family can be hard.

But we know that hard conversations are often the most impactful.

You can bring tremendous value to your clients, and build and sustain your business, by helping families navigate the great wealth transfer.

Start the wealth transfer conversation.

Be patient! It’s important to stress that there’s plenty of time to decide on specifics.

This really hits home for me, since my parents are the type of people who feel like they’re never going to die.

These types of conversations can be pretty nerve-wracking for them.

After my grandmother passed, my mom struggled with closing the estate.

These challenges made my parents realize we as a core unit needed a plan in place for their estate.

Now, we as a core unit know exactly what the plan is, where the documentation exists, and who we should call when something happens to them.

Getting a plan in place is not a one-time conversation.

They’ve made some changes in the last few years and continue to inform my sister and me.

This puts us all on the same page with their plans for the estate after they’re gone.

The conversation doesn’t have to be all doom and gloom.

Try to make the wealth conversation more about things they love by identifying their passions and values.

For me, my parents have always tried to save what they’ve earned, enjoy life, and value family above all else.

I’ve always known how hard my parents worked and couldn’t be more proud of them.

Their perspectives have shaped the way I save money and invest today.

Our estate planning conversations have made my sister and me want to continue my parents’ legacy and model our lives to be more like them.

Some families may rely on you to moderate their wealth transfer conversations.

This is a good time to explain your intentions and ask good questions.

By following this simple agenda, you’ll empower your clients and their families to discuss their wealth transfer plan.

1. Purpose of the meeting: Address the fact that you’re here to review goals and educate the family about legacy conversations.

2. Set meeting expectations: Remind everyone involved to be respectful and to actively listen.