Displaying items by tag: estate planning

Working with high-net-worth (HNW) clients offers advisors the opportunity to grow assets under management and revenue, but winning these relationships requires delivering more specialized expertise. Wealthy investors tend to prioritize education, performance and deep relationship-building, while focusing heavily on wealth preservation and legacy planning.

Surveys show that most HNW households plan to transfer wealth during their lifetimes, worry about healthcare costs and inflation, and are highly engaged in charitable giving, valuable insights that can help advisors shape their service models. 

To meet this demand, firms can expand into estate planning, succession planning, tax strategy and other complex services that align with affluent investors’ needs. Advisors who collaborate with estate attorneys, CPAs and other centers of influence may find it easier to build credibility and attract HNW prospects through referrals. 

Finsum: Ultimately, growing an advisory practice in the HNW segment comes down to offering sophisticated, personalized planning that speaks directly to the financial realities.

The Great Wealth Transfer, an estimated $90 trillion shifting across generations over the next two decades, is poised to reshape advisor–client relationships, yet most affluent investors remain underprepared for the transition. Nearly one-third of wealthy investors lack even a basic will or trust, and many who do have plans will require significant updates as their lives, assets, and tax environments evolve. 

The research identifies four distinct motivational segments—Financial Achievers, Leisure Seekers, Legacy Leavers, and Cautious Givers—each defined by emotional drivers that meaningfully shape how clients view wealth, planning, and risk. 

With younger generations showing a higher affinity for digital tools yet still wanting human guidance, advisors must blend personal expertise with accessible online solutions to meet clients where they are. 

Finsum: Ultimately, those who tailor their estate-planning approach to individual psychology will be the ones who thrive as this massive transfer of wealth unfolds.

Estate planning is often overlooked or treated as an afterthought, crammed into the final moments of client meetings, if it’s offered at all. Yet nearly all investors, especially younger ones, now expect their advisors to include estate and tax planning as core parts of a holistic financial strategy. 

As trillions of dollars shift between generations, advisors who avoid these conversations risk irrelevance and client attrition. A modern, effective approach to estate planning requires more than good intentions, it demands scalable technology, family-inclusive strategies, and clear, repeatable processes. 

Platforms that visualize beneficiary summaries, tax impact, and legacy goals not only make these conversations easier but also more meaningful and professional. 

Finsum: In today’s competitive advisory landscape, firms that prioritize thoughtful estate planning will be the ones that grow, retain assets, and lead the next era of wealth management.

Estate planning varies significantly by net worth, with high-net-worth individuals requiring complex trust-based strategies to reduce estate taxes and control asset distribution, while mass-affluent clients generally need simpler documents like wills and healthcare directives. 

Because legal costs can be a barrier for these simpler needs, tech startups such as Wealth.com and Trust & Will have emerged to help financial advisors offer affordable estate planning at scale. Charles Schwab recently acquired a minority stake in Wealth.com to provide self-directed estate planning tools for its mass-affluent retail clients, potentially competing with RIAs that use Schwab as a custodian. 

While this move could delay when clients feel they need to hire an advisor, many RIAs haven’t widely adopted estate planning tech due to low client usage and unclear ROI. Some advisors view Schwab’s actions as retail encroachment, but others see minimal threat since clients rarely update estate documents and often don’t view the service as highly differentiating. 

Finsum: Ultimately, Schwab’s investment reflects a growing DIY market segment, raising strategic questions for advisors about how and when to compete—or collaborate—with such tools.

Estate planning is becoming a key differentiator for financial advisors, with 80% of clients expecting support in this area, yet many advisors still overlook it. A significant gap exists in tax planning, as nearly 90% of clients worry about tax impacts, but less than half have taken proactive steps. 

Beyond taxes, estate planning ensures smoother asset transfers, addresses state-level taxes, and clarifies how heirs receive funds. Many clients also lack knowledge about trusts, particularly the benefits of revocable versus irrevocable structures. 

Advisors who integrate estate planning into their services are growing their books faster by attracting new clients and strengthening relationships.

Finsum: Advisors who ignore it risk losing assets to competitors who offer these essential services.