Advisors who are not engaging their clients in a wealth-transfer conversation may be taking needless risks and missing promising opportunities, according to a study released by Pershing this week.
The study, which examined some 1,200 investors across the country, found that only 35% of survey participants said their advisor provided a service that helped them manage and transfer wealth across generations.
Pershing noted that an estimated $12 trillion in financial and nonfinancial assets was currently changing hands, and another $30 trillion would be transferred by midcentury.
To take advantage of this enormous opportunity, Pershing said, advisors need to ensure that the family group is at the forefront of a practice rather than just the primary account holders.
According to the study, only 17% of clients with children reported that their adult children worked with their primary advisor, and a mere 3% of clients said their advisor had asked to meet with their children.
Forty-one percent of investors said they had asked their advisor to meet with their children.