Your client's kids are already forming opinions about you, says UBS’ Alexis Allen

For high-net-worth families preparing to pass down assets, the biggest challenge often isn't financial planning it's starting the conversation at all.

UBS is seeing this play out among multi-generational families. In its recently-released Next Generation Report, 33% of next-generation respondents say communication gaps or avoidance of difficult conversations are the leading source of tension.

Alexis Allen, associate financial advisor at UBS, works at the centre of these dynamics. She spoke with InvestmentNews about what the data reflects in practice, and what families and advisors need to do differently.

The framing of wealth transfer as responsibility rather than inheritance is one of the report's more striking findings. Allen says it reflects a genuine generational shift in how younger clients show up to these conversations.

"This is a generation that deeply values transparency, not just around what they will inherit, but around the intent behind the wealth and how to be responsible stewards of it," she says. "In practice, next-generation family members are often the ones initiating these conversations earlier. They want to understand what will be expected of them, where they will have influence, and how to build the skills and judgment needed to manage wealth thoughtfully long before a formal transfer occurs."

That appetite for engagement is changing how advisors structure their work.

"Advisors are engaging families much earlier and in more expansive ways," Allen explains. "That includes facilitating family conversations around purpose and shared values, helping define roles and decision-making authority, and introducing next-gen members to governance structures while they are still forming their perspectives. Advisors are also bringing younger family members into planning discussions through education around investments, philanthropy, and risk, involving them in grantmaking or investment committees, and using family meetings as a forum to practice thoughtful decision-making."

The payoff for doing this work early is clear and she says that the firm consistently sees that families who do this work early tend to navigate transitions more successfully, because next-generation inheritors step into responsibility with confidence, context, and a clear understanding of their role.

Values-based portfolios

The report also shows that younger wealthy investors increasingly want their portfolios to reflect their values — and Allen says this is reshaping the planning conversation from the ground up.

"Capital is no longer viewed purely as a vehicle for returns, but also as an expression of identity, values, and long-term intent," she says. "Many next-generation clients are thinking about alignment well before traditional milestones like liquidity events or peak earning years. They want to understand not just what their capital is doing, but what it represents and the kind of future it helps shape."

In practice, this means the sequence of a planning conversation has changed. "Before discussing asset allocation or tax strategy, we spend significant time helping clients articulate what truly matters to them: the issues they feel personally connected to, the change they want to see in the world, and the role they want their wealth to play across generations."

Philanthropy has become a particularly meaningful lens for this. Allen describes how she approaches it with clients.

"A core component is philanthropy — and not only how they are strategic with their treasure, but also pairing it with intentional conversations around their talent and time: Where do clients want to lend their expertise? How hands-on do they want to be with the organizations they support? Are there board roles, mentorship opportunities, or advocacy efforts that feel meaningful to them? When all three Ts are aligned, philanthropy becomes not just a capital deployment strategy, but a deeply personal expression of purpose."

Seeking advice

Despite that openness to engagement, many next-gen clients aren't turning to advisors first. The UBS report finds that peer networks and personal communities often carry more weight than professional advice — at least initially. Allen says advisors need to understand why, rather than resist it.

"This generation places a premium on authenticity and shared experience. Peer communities provide that in a way that feels credible and aligned with their interests, which is why they often turn there first," she says. "As a digitally native generation, they're accustomed to instant access and endless choice, and they instinctively cross-check perspectives — so firsthand experience carries weight, especially when someone in their network has personally navigated a similar experience or decision."

The response for advisors, she argues, isn't to compete with those networks but to find a different kind of relevance.

"The goal isn't to compete with peer networks, but to complement them as subject matter experts — to earn trust over time and engaging well before major wealth events occur." She also points to team composition as a factor. "Building a multigenerational team is also critical here, because trust is often built through natural connection points. When clients can engage with advisors who have navigated similar life stages — whether buying a first home, building a career, or stepping into greater responsibility — the relationship feels more relevant and credible."

Waiting too long

Even families who understand the importance of early conversations often wait too long to have them — and when they do, Allen says they tend to focus on the wrong things.

"Families often get this wrong by waiting too long and by defining readiness too narrowly. Too often, conversations focus on financial details and structures, rather than helping younger family members build context and a sense of responsibility and confidence over time. When discussions finally happen, they can feel rushed and disconnected from real life situations."

Her recommended approach is gradual and age-appropriate. "It might begin with involving children in volunteering and talking about why the family supports certain causes, then gradually connecting those experiences to giving and decision-making. As young adults enter the workforce, the focus can shift to trade-offs, accountability, and how values are reflected when they are first-time spenders."

Done well, she says, the transfer itself stops feeling like an event. "Families that take this age-appropriate, long-term approach help ensure that wealth transfer feels like a natural continuation of an ongoing dialogue, rather than a sudden handoff. That's what develops thoughtful stewards, not just beneficiaries."

Family offices

Across family offices in particular, Allen says she is seeing philanthropy, impact investing, and traditional portfolio management converge into a single integrated strategy — driven largely by the next generation.

"Most sophisticated next-gen clients are thinking about the full capital spectrum as one integrated picture — so philanthropic giving, impact investments, and traditional portfolio returns are not three separate buckets, but rather three levers within a single strategy oriented around a larger purpose," she says. "For many families, that means the values conversation has to come first. Before talking about asset allocation or vehicles, next-gen investors want to be clear on what the wealth is meant to support and what role it should play in the world."

She also highlights a notable gender dynamic in the data. "We're seeing this especially among next-generation women, who are four times more likely than their male peers to be invested in impact and ESG products — but it's a broader shift overall, with nearly half of all next-gen respondents already invested or actively wanting to learn more." The most forward-thinking families, she adds, are going further still: "embedding those values directly into governance, investment policy statements, and how they bring the next generation into decision-making."

Winners and losers

With trillions expected to change hands over the coming decades, the stakes for advisors are significant. Allen is direct about what will separate those who retain assets across generations from those who don't.

"The advisors who retain assets across generations are the ones who understood early that the client is the entire family — with their unique values and dynamics. That means building genuine relationships with the next generation long before they have significant assets of their own."

Beyond relationship-building, she points to a coordination role that many advisors still underplay. "What I think will truly separate advisors is the ability to hold the whole picture together over time — coordinating across legal, tax, estate, and investment teams so that the family is not bouncing between several different professionals without anyone connecting the dots. Facilitating the intergenerational dialogue that helps everyone find their voice and their role, and helping families build the governance structures that make it lasting."

The families she works with, she says, are not looking for a transactional service. "They want a long-term partner with a consistent approach and someone they trust to help guide them toward where they want to go over decades."

Act now

For Allen, the window to build those relationships is open — but not indefinitely. Younger inheritors want advisors who actively expand their horizons, not just manage what already exists.

"They want a relationship that helps them become more capable stewards of their wealth and supports how they define a fulfilling life. They want to feel known by the people they work with, not just serviced by them," she says. "The firms that will win are the ones building genuine competency in intergenerational planning, in values-aligned investing, and in facilitating thoughtful family conversations. The window to build those relationships is right now, and the advisors who are doing that work today will be extraordinarily well positioned for what is coming."