and concerns face-to-face , you can help defuse any misunderstanding or potential disputes down the line .
Visual aids will be a great help at these meetings . It ’ s beneficial to use estate plan flowcharts , which are invaluable in breaking complex planning concepts down into digestible pieces of information . Whether you ’ re outlining asset distribution or trust structures , visual aids make otherwise intricate information more comprehensible .
Financial decisions aren ’ t just about numbers — they ’ re about people , legacies and futures . These approaches will help you humanize your advice , and thus help the whole family understand the real-life stand their unique financial perspectives and goals — an essential step in showing them how an influx of money will impact their lives .
Handling both older and newer generations means you must be able to offer a full complement of services — and demonstrate the ways you can handle both the complex financial needs of wealthy clients while also being nimble enough to address the more straightforward , evolving needs of their younger heirs .
People have different demands on them at different stages of their lives ( and when they ’ re at different wealth levels ). Advisors and their tool kits must be versatile enough to cater to these different needs .
One of the things that can help is planning software with interactive scenario modeling , a suite of easily digestible reports and tools that will aid you in continuous client collaboration and strengthen your relationships with young family members .
reasons : They ensure that the legacy plan you create will be built on solid footing and that everybody understands it . Such meetings also help you educate heirs . Later , the strong relationships you have built with the younger generation will help you retain assets under management .
And by engaging both your clients and their heirs , you ’ ll further ensure that your client ’ s wishes are understood and respected by the next generation . Such collaborative meetings foster communication and transparency and bolster family cohesion about wealth management decisions . By addressing any questions impact of your plan , which means your advice will more deeply resonate , fostering family trust and a shared commitment to the agreed-upon financial strategies .
Step No . 3 : Conduct Individual Meetings With The Next Generation
The last , yet equally critical step for advisors navigating the Great Wealth Transfer is holding one-on-one meetings with next generation members as well . This goes for mass affluent clients as well as high-net-worth clients . Such meetings are pivotal in building meaningful relationships with people who might eventually become your clients if they aren ’ t already . In such encounters you can demonstrate things that will affect their financial futures , for instance the way an inheritance could affect their goals .
Even if you ’ ve already met next-generation clients in a family setting , a oneon-one meeting gives them a way to ask questions and express concerns in a private setting . This will help you under-
One of the things that can help is planning software with interactive scenario modeling , a suite of easily digestible reports and tools that will aid you in continuous client collaboration and strengthen your relationships with young family members . These features will be invaluable in helping demystify the wealth-transfer process while helping clients make wise use of the inheritance they ’ ll receive .
Two Sides
As the Great Wealth Transfer unfolds , financial advisors will be tasked with facilitating a smooth transition of wealth between generations . That gives them a great opportunity to bolster existing relationships , build new ones and continue to manage family wealth for many years to come .
There are two sides to this story .
JOSHUA BELFIORE is manager of group product management at eMoney Advisor .
NOVEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 53