As a financial advisor, it is important that you know all of the needs of your clients, and that can often include more than estate planning and wealth management advice, especially when it comes to your high-net-worth (HNW) clients. HNW clients have a certain set of values and needs when it comes to their money management, and their needs often focus around legacy planning in order to ensure that the next generation of their family will not only inherit their family’s wealth, but that the next generation will also carry on the values, ethics, and philanthropic ideals that the family has carried in the past.

For a holistic approach to legacy planning for HNW clients, Aspida360 offers a platform for advisors to utilize different tools and resources that can help you to grow your business and will also help you to fully understand and help plan for the legacy of your HNW clients. To learn some of the top needs of HNW clients and what they value most in a financial advisor, keep reading.

High-Net-Worth Clients Need More Than Technical Advice

While the majority of HNW clients ask for advice on the technical aspects of estate planning and wealth management, one-third are asking their financial advisors for help prioritizing goals and putting strategies into place to help them with their legacy planning. The truth is, in order for HNW clients to get the most out of their estate planning, they need to be identifying family needs such as how to implement continued charitable giving, pass on important family values and life lessons, and how to continually invest in order to have a social impact. These things can only be carried-out and implemented by the next generation of the family if legacy planning has been as well thought out as how the transfer of monies and objects will take place.

Planning To Leave A Legacy

Three in four HNW families believe that it is important to leave an inheritance to the next generation of their family, however, only one in five believes that their heirs will be prepared to handle the inheritance that is left to them. If legacy planning has not been an integral part of the wealth transfer process, the family wealth could stop with the next generation. In order to carry on and continue to build wealth within a family, having a key set of principles and purpose for the family’s wealth is essential.

Important Notes For Financial Advisors

Wealth transfers and legacy planning can only be truly successful if these important elements are taken into consideration:

  • Having a family mission is critical – HNW families need to determine the mission behind their money and have someone within the family who will take the time and effort to ensure that the next generation is aware of the important aspects of their family’s wealth and the inheritance they will one day be entitled to.
  • Teaching leadership is crucial – Someone within the family will need to take on the role of leader in order to bridge the gap between the older and younger generation, as well as in order to prepare the younger generation to fully understand the roles and responsibilities that come with inheriting the family’s wealth.
  • The key to all of this is communication – HNW families need to communicate with both their financial advisor and with the next generation in their family as to what exactly their family stands for. This is the only way to ensure that their family purpose is carried out from generation to generation.

With the help of Aspida360, financial advisors can have access to the tools and resources they need to better help their HNW clients with legacy planning in order to mitigate wealth transfer failure from one generation to the next. Learn more about the Aspida360 platform now!