Over the next quarter-century, an estimated $120 trillion in wealth is projected to be transferred to the next generation of inheritors, according to research by Cerulli Associates. Yet despite this enormous transfer of assets, many heirs are choosing not to continue relationships with their benefactors’ wealth advisors, highlighting a growing generational gap in wealth management practices.

Cerulli’s survey of investors holding at least $250,000 in financial assets found that only 27% of prospective beneficiaries—mostly widows and children—intend to retain their benefactor’s advisor. For individuals who have already inherited wealth, the retention rate falls even lower, to around 20%, according to the September report.

However, these figures do not necessarily indicate a mass shift toward self-directed investing or digital financial tools. The survey revealed that many heirs who opt for different advisors are not rejecting professional guidance entirely. Half of respondents cited having their own advisor as the primary reason for choosing a different path. A significant portion, 28%, reported that they had no established relationship with their benefactor’s advisor. Only 14% expressed a preference for managing investments without professional advice, and 10% felt the existing advisor did not align with their specific investment goals. Respondents were allowed to select multiple reasons for their choices, underscoring that the decision to switch advisors often involves a combination of factors.

John McKenna, a research analyst at Cerulli, explains that the age of heirs plays a critical role in this trend. “Keep in mind, if the parents die in their 70s or 80s, the inheritor is typically between 40 and 60,” McKenna noted. “In most of these cases, the inheritors have already matured into experienced wealth management clients. They have existing relationships with advisors and are simply adding incremental wealth to those relationships, rather than forming a new bond with the legacy advisor.”

From the perspective of benefactors planning their estates, Cerulli’s findings suggest a notable ambivalence regarding whether heirs continue with the same advisors. Although most benefactors reported satisfaction with their current advisors, only slightly more than a quarter expressed a preference for their heirs to maintain the relationship. More than half said they were unsure or felt the choice should be left to the beneficiary. Seven percent explicitly stated that they did not want their heirs to continue working with the advisor, often because no prior relationship existed between the advisor and the heir.

According to Scott Smith, senior director of advice relationships at Cerulli, the core challenge is a lack of communication around estate planning. Many clients hesitate to discuss wealth transfer plans with their families. Among investors with over $5 million in assets, one in five reported that they intended for heirs to learn about their wealth only after their passing. The number of individuals postponing these conversations may be even higher: 34% of heirs from high-net-worth families indicated that they were informed of inheritance details only after the benefactor had passed away.

Smith emphasizes the disconnect between intentions and reality. “Benefactors believe they will talk to the next generation about this stuff before they die,” he said. “But when we ask the next generation, these conversations didn’t happen.”

The lack of early dialogue presents challenges for advisors, who may have limited opportunities to engage directly with the next generation and demonstrate their value. Smith stresses that advisors must be proactive in encouraging clients to initiate these often uncomfortable discussions.

“Advisors should reinforce with their primary client that it’s important for the survivor to become involved early,” Smith explained. “This ensures the inheritor has a solid foundation and is prepared when the time comes. It’s not just about retaining assets; it’s about easing the transition and making it less stressful for the survivor.”

The survey also revealed that heirs’ decisions to switch advisors are influenced by generational differences in approach and expectations. While older investors may prioritize long-standing relationships and trust, younger inheritors are more likely to evaluate advisors based on alignment with personal investment philosophies, technological capabilities, and personalized service. As a result, wealth management strategies must adapt to accommodate these changing expectations.

The implications for the wealth management industry are substantial. Firms that fail to engage with both current clients and their prospective heirs risk losing a portion of the $120 trillion transfer in the coming decades. Maintaining continuity requires not only building trust with the original client but also cultivating relationships with the inheritor well in advance of wealth transfer.

Educational initiatives can also play a key role in bridging this gap. Advisors who actively involve heirs in financial planning discussions can improve retention rates and ensure that beneficiaries feel confident in continuing professional guidance. By providing clarity around investment strategies, risk tolerance, and long-term financial goals, advisors can position themselves as trusted partners across generations.

Moreover, technology and digital solutions can serve as complementary tools in this process. While younger inheritors may prefer platforms that provide real-time tracking and automated insights, these tools should enhance—not replace—the personalized service that high-net-worth clients expect. Balancing digital convenience with human expertise will be critical for sustaining client relationships through wealth transfers.

Family dynamics also play an essential role. Open communication within families about financial expectations, legacy goals, and advisor roles can reduce uncertainty and prevent conflicts. Advisors who facilitate these conversations can help align family members’ expectations, ensuring that heirs are well-prepared to manage inherited assets responsibly.

Cerulli’s findings highlight a broader trend in wealth management: the need for proactive planning and multigenerational engagement. Advisors who wait until assets are transferred may find themselves facing disengaged heirs or missed opportunities. By fostering early involvement and addressing the unique needs of the next generation, advisors can strengthen relationships and safeguard the continuity of their practice.

In conclusion, the coming wave of wealth transfer presents both challenges and opportunities for the financial advisory industry. With more than $120 trillion expected to change hands, the stakes are high. By understanding generational differences, encouraging transparent communication, and providing tailored guidance, advisors can ensure that inheritors remain engaged and well-supported. This approach not only secures client assets but also provides heirs with the confidence and stability they need to navigate a significant financial transition.