Lost in transition: Why family fortunes rarely survive the second generation, and what to do about it

Lost in transition: Why family fortunes rarely survive the second generation, and what to do about it
Beyond a legal risk management exercise, estate planning is a gateway conversation that connects generations and casts the advisor as a trusted guide.
JUN 16, 2026

The first generation builds it. The second enjoys it. The third wonders where it went. That stark reality looms large as the industry faces the largest transfer of assets in history.

Over the next 25 years, an estimated $124 trillion is expected to change hands.1 flowing from baby boomers to spouses, children, and grandchildren. This moment isn’t about new money being created, it’s about money in motion. Where that money lands will depend less on market performance and more on relationships, communication, and preparation.

Before we explore the steps you can take to attract your clients’ children and grandchildren, it’s important to understand who the next generation represents to your clients today. They are your clients’ support network – their spouse, their adult children, their trusted family members and close friends, and inevitably your prospects as heirs. These individuals may not be revenue-generating clients right now, but given the scale of the wealth transfer underway, they will be. Advisors who invest time and intention in these relationships today are far more likely to retain assets tomorrow.

They’re also your clients’ named fiduciaries in their estate plan documents, the future decision-makers for your clients’ estates. One of the most effective ways to place yourself at the center of this great wealth transfer is through estate planning. Estate planning is not just a legal exercise, it’s the gateway conversation that connects generations and positions the advisor as a trusted guide through complexity, emotion, and uncertainty.

Step one: Choosing the right clients to start with

Engaging the next generation isn’t possible or appropriate with every client. The first step is selecting clients who are ready and willing to share information with their families. While 70% of parents have created wills or estate plans, only 32 percent have shared concrete inheritance details with their heirs. In the same line, 76% of adult children want to know whether they are beneficiaries, compared to just 35% of baby boomer parents who believe that information needs to be disclosed.2 

Advisors must help clients navigate this gap. When done thoughtfully, estate planning discussions can normalize transparency, reduce future conflict, and build trust across generations.

Step two: Preparing heirs with essential knowledge

Inclusion without comprehension is ineffective. Many heirs will inherit significant assets without the financial literacy required to manage them confidently.

This makes financial education for the next generation essential. Education doesn’t need to be overwhelming or technical; it needs to be relevant, practical, and timed appropriately. Helping heirs understand cash flow, taxes, trusts, philanthropy, and long-term decision-making strengthens outcomes for both the family and the advisor.

Step three: Cultivating connection – early and intentionally

Successful engagement happens gradually. The goal isn’t to force participation but to enable access and ensure relevance.

  • Begin with small, intentional steps: Introductory discussions and short but consistent interactions establish early familiarity and build comfort progressively over time. It is as simple as sending a short note recognizing a recent graduation, promotion, or personal milestone. These gestures reinforce connection without creating pressure.
  • Prioritize retention through meaningful connection: Facilitated family meetings and shared educational experiences strengthen intergenerational trust and help preserve both family wealth and long‑standing advisory relationships.
  • Accommodate modern expectations and lifestyle demands: Digital‑first engagement, such as on‑demand educational content, streamlined processes, and reduced paperwork, creates accessible and efficient pathways for busy heirs to participate on their own terms. Advisors might provide access to a short video module explaining trusts, use e‑signature tools to simplify document completion, or offer digital scheduling to let next‑gen clients book time without back‑and‑forth emails.

The often-overlooked heir: The surviving spouse

When discussing heirs, it’s critical to remember that the first transfer often happens within the marriage, rather than to the children. In most cases, the surviving spouse—and statistically, that spouse is a woman – becomes the primary decision-maker. By 2048, nearly $40 trillion will pass to widows who are baby boomers or older,3 making them a crucial bridge to the next generation.

Yet despite this reality, 70 percent of widows leave their advisor within one year of their spouse’s death.4 This is a sad statistic for the industry as a whole. The reason is rarely performance. More often, it’s a lack of prior relationship, unclear value, or the feeling that the advisor was “his advisor,” not theirs. This disconnect represents both a challenge and an extraordinary opportunity. Women refer advisors at two and a half times the rate of men,5 yet only 18.5% of financial advisors are women.6 Female advisors alone cannot meet the demand.

The solution isn’t simply more women advisors; it’s a shift in how financial planning is delivered. Women, particularly widows, often prioritize:

  • Retirement security
  • Education for children or grandchildren
  • Philanthropy and impact
  • Gifting strategies over inheritance-only planning

This calls for a more needs-based, values-driven approach, one that integrates philanthropy, strategic gifting, socially responsible goals, and longevity planning. Estate planning is often the ideal entry point for advisors. It naturally involves the surviving spouse, goes beyond investments, and creates space for deeper conversations about values, legacy, and purpose. Through this process, advisors can build trust, demonstrate relevance, and establish durable relationships that carry forward to the next generation.

The Great Wealth Transfer will reward advisors who understand one simple truth: assets follow relationships. Engaging the next generation, and the surviving spouse, is no longer optional. It is central to retention, growth, and relevance in the decades ahead. Advisors who start early, educate thoughtfully, and expand planning beyond portfolios will not only preserve wealth for families, they will preserve their place at the table.

 

1. The Cerulli Report—U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024.

3. The Cerulli Report—U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024.

4. “Widows’ voices: The value of financial planning,” Journal of Financial Service Professionals, January 2018.

4. Market study by Delia Passi, as published in her book. Winning the Toughest Customer: The Essential Guide to Selling to Women, July 1, 2006.

6. Garmhausen, Steve. The top 100 women advisors for 2024: A growing force in wealth management. Barron’s. February 12, 2024. 

 

Latest News

Vanderbilt Securities 'discharges' Philly area advisor facing excessive trading claims 
Vanderbilt Securities 'discharges' Philly area advisor facing excessive trading claims 

The advisor, Gregory W. Ricker, started his career in the securities industry in 1995.

Carson Group adds $1.6B Marietta Wealth Management in Atlanta push
Carson Group adds $1.6B Marietta Wealth Management in Atlanta push

The four-partner Georgia RIA joins the integrated Carson Wealth channel, deepening the $66 billion mega-RIA's Atlanta M&A footprint

Hightower Signature Wealth tops $50B with $9B Altium addition
Hightower Signature Wealth tops $50B with $9B Altium addition

The $9 billion practice’s move into Hightower’s W-2 channel continues a string of internal conversions in a record-pace year for RIA M&A

The Fed paused. Stocks stalled. Underneath, everything moved.
The Fed paused. Stocks stalled. Underneath, everything moved.

Steady rates, cheaper multiples, a record rotation under the surface and a dollar that turned.

Missouri bans advisors from using credential sharing to manage 401(k)s
Missouri bans advisors from using credential sharing to manage 401(k)s

The new rule was adopted despite objections from Stifel and Pontera, adding state weight to Fidelity and Schwab's restrictions on credential sharing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor