The Great Wealth Transfer is coming, and many Americans aren't ready for it.
According to a
"We really want to work with our clients and our advisors to close that gap," said Amy Theisen, the senior strategist at Edward Jones' estate and legacy research team. "We really see that conversation as something that maybe has been overlooked over the years — perhaps it was taboo — but something that really needs to come to the front of the line."
These conversations have taken on new urgency because of the Great Wealth Transfer, which is already underway. By 2045, the baby boomer generations and the silent generation are expected to leave $72.6 trillion to their heirs, researchers at
Americans know they need to do more to get ready — on both sides of the will. According to Edward Jones' study, which surveyed 2,202 U.S. adults, only 23% feel prepared to pass down an inheritance, and only 25% of younger generations feel prepared to receive one.
The best way to prepare for the transfer, Theisen said, is to talk about it. And yet 35% of Americans don't plan to ever have that discussion.
"We understand that planning can be complex and intimidating for some, but we also know that the communication behind the plan is really what puts the plan in action," Theisen said. "It's more than about just the dollars and cents. It's about how you are communicating what that means for you, for your family, your wishes, your purpose and how that extends to future generations."
Why do families avoid these conversations? Wealth managers say there are many factors.
"Some of the reasons are a fear that their heirs may develop a sense of entitlement and not work hard to accomplish things on their own," said Ashley Folkes, founder of
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Whatever the reason, financial advisors can help clients overcome their fears. Fifty-seven percent of Edward Jones' respondents said having an advisor guide their discussions would make them easier.
"They can play multiple roles within those meetings," Theisen said. "They could be a moderator, they could be a coach to help people prepare for those meetings … They are not going to be the one deciding who gets what, or being the 'referee,' so to speak, but they provide structure for that meeting. They can provide a safe environment for everybody."
Many wealth managers are familiar with these roles. Mitchell Kraus, owner of
"Most of our clients are initially reluctant to talk to their children and grandchildren regarding money issues," Kraus said. "My biggest tip is to be consistent and patient. Clients will often say no, but, given some time to think, will come around. They can often take small steps that can lead to large changes over time."
Even if the inheritance itself is too sensitive a topic, Folkes said, advisors can help by leading broader conversations about money — the more often, the better.
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"I am a big believer in financial education, and the conversations about money and inheritance should start early," Folkes said. "Even if you don't want to mention inheritance, education can create the correct values and understanding of money, so they handle it responsibly when they receive it."
The most important thing, Theisen said, is that this isn't a "one-and-done" conversation — wealth managers should get their clients talking about this so often that the taboo finally wears off and the importance sinks in.
"I like to encourage people to think of wealth as more than money," Theisen said. "It's about what you want your legacy to be. Do you want that to be a legacy of love? Or do you want that to be a legacy where people really didn't understand what you were trying to communicate to them?"
