Leo Anzoleaga, Certified Mortgage Planning Specialist & Senior VP of Residential Lending, Luminate Bank. NMLS ID #251882.
The most significant generational wealth transfer in U.S. history is underway, with an estimated $120 trillion in assets expected to change hands over the next 25 years. While the majority of this transfer won’t take place for another decade or two, research shows that nearly $2.5 trillion is already being passed down annually.
For many advisors, the Great Wealth Transfer represents both an extraordinary opportunity and a significant risk. Trends are changing. The traditional model, where parents held onto their wealth until the end of their lives, is a way of the past. Even more alarming for financial advisors is the increasing challenge of retention, with a recent survey by Capgemini reporting that 4 out of 5 next-generation millionaires plan to replace their parents’ wealth management advisor within one to two years of inheriting their wealth.
To address these challenges, financial advisors must act now. As trends evolve and expectations shift, those who fail to engage and build trust with both generations today risk losing tomorrow’s business. The next-generation client expects a more modern, personalized, transparent and values-driven approach. Advisors who develop and expand their relationships to cover these cross-generational changes can be best positioned to succeed and secure client relationships for the future.
The Shift From ‘Later’ To ‘Now’
Traditionally, parents transferred the majority of their assets through wills and trusts, allowing financial advisors to employ the classic “later” model. Today, this model is changing; many parents are already initiating the wealth transfer process by providing financial support to their adult children, who face increasing challenges affording major life milestones.
For example, homeownership has historically been one of the most significant purchases a person makes. In 2025, nearly 1 in 4 young adults will rely on family assistance, whether in the form of a cash gift or inheritance, for their down payment. And the support doesn’t stop there. Many parents are gifting vehicles, paying off debt and providing continual financial support to help their children cover household expenses.
Financial advisors who fail to join these conversations risk being left behind, but those who engage both generations today can help shape how wealth is managed and sustained tomorrow.
Why Your Clients’ Children Won’t Automatically Choose You
You’ve spent years earning your clients’ trust. You’ve delivered strong results, guided them through market volatility and helped them achieve their financial goals—but none of this guarantees that their children will continue to work with you.
This next generation consumes financial information differently, prefers digital communications channels and expects a customer experience that is transparent, interactive and technology-driven. They seek advisors who proactively engage through digital platforms, offer instantly accessible information and acknowledge their desire for socially responsible investment choices.
Unlike previous generations’ preference for in-person meetings and quarterly reviews, today’s clients learn about investment strategies via podcasts, seek guidance from online communities and manage their portfolios through mobile apps. Advisors must adapt to remain relevant.
In addition, for the first time, women are poised to inherit the bulk of this wealth transfer, with one analyst estimating that women will inherit 70% of the Great Wealth Transfer. As women’s financial power increases, key areas of finance, philanthropy and investment strategies will likely be reshaped.
All of these factors and potential areas of disconnect are why many heirs anticipate replacing their parents’ financial advisors. Advisors who lack the direct relationship will likely find themselves competing for this business with advisors who already speak the next generation’s language.
The challenge for advisors is clear: Serve multiple generations today or risk losing the next one completely.
Four Strategies To Bridge The Generational Divide
1. Master the mechanisms.
From tax implications of gifts versus loans to co-borrowing and non-occupancy arrangements, these are the areas that today’s families are focusing on. If these areas fall outside your expertise, build a trusted network of professionals to whom you can refer clients.
2. Ask for the introduction.
When clients inquire about helping their children financially, go beyond just answering the question and request the introduction. Use this opportunity to position yourself as a resource for the entire family.
3. Adapt your communication.
Don’t utilize the same methods for every generation. Younger clients often prefer concise digital updates and frequent but brief touchpoints. Tailor your style to their preferences to make your expertise more relatable and relevant.
4. Provide holistic guidance.
The most valuable advisors do more than execute transactions; they advise clients on the implications. Should parents give money now or structure it as a loan? How does early assistance affect future estate planning? What should parents consider when multiple children are involved? Facilitating these discussions allows you to showcase your expertise and establish yourself as the trusted advisor for both generations.
The Path Forward
The Great Wealth Transfer does not loom in the future; it’s shaping the present and how families build and share their prosperity. Financial professionals who recognize this shift and adapt can not only retain current client relationships but also expand them to include the next generation. The question is not whether this transfer will happen, but whether you will guide both sides of it.
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