As a financial advisor, we are sure you’re well-aware that 91 percent of all wealth transfers fail by the time the assets reach the grandchildren of the original wealth creators. This is, in large part, due to inadequate legacy planning, and not making the family values and mission just as well-known and relevant to the next generation as the wealth that their family possesses. Wealth transfers do not have to continue being so widely unsuccessful. With the help of the Aspida360 platform and our financial advisor coaching, you can have access to a comprehensive family wealth planning system that allows you to help your high-net-worth (HNW) clients clearly define and outline their family purpose, and the goals that they would like to see achieved with their wealth.

In order to better understand the need for legacy planning, it is important to understand why the majority of wealth transfers are so unsuccessful, which is what we’d like to cover today.

The Main Causes Of Wealth Transfer Failure

#1. Lack of trust and miscommunication between family members is attributed to 60 percent of the reason why wealth transfers fail from one generation to the next.

#2. Twenty-five percent of wealth transfer failure has been attributed to the family heirs being inadequatly prepared to handle their inheritance.

#3. Not having a clear family mission defined and made known to heirs is 12 percent of the cause behind wealth transfer failure.

#4. Only three percent of the reason behind wealth transfer failure has been attributed to poor technical advice from financial advisors.

The majority of HNW clients are seeking technical advice from their financial advisors as to the best way to plan their estates, whereas only one-third of clients are seeking help with comprehensive legacy planning. However, it is clear that implementing the importance of family legacy into estate planning is the key to mitigating wealth transfer failure.

How To Create Successful Wealth Transfers As An Advisor

As a financial advisor, the help you give your clients in regards to planning their estate is only beneficial when the next generation can successfully inherit their family’s wealth and continue the family’s mission. In order for your client’s family to experience a successful transfer of wealth to the next generation, as an advisor, you need the financial advisor coaching and tools that are key to legacy planning. Here at Aspida360, we have created a platform that makes working with your HNW clients on defining what they’d like their family legacy to include an easy and fundamental part of the advising process.

On top of your current business model, you can use the Aspida360 platform to provide your clients with the ability to:

  • Realize a deeper awareness of family legacy and how to perpetuate it
  • Achieve added clarity to philanthropic goals
  • Purposefully prepare beneficiaries to handle an inheritance
  • Increase meaningful communication with beneficiaries
  • Add formal family governance structures

In a world where the gap between older and younger generations is becoming increasingly obvious, not all families have the ability to communicate family values and ideals clearly and effectively. Unless financial advisors are actively seeking to help their HNW clients ensure that the next generation within their family will have access to a clear and concise family mission, wealth transfer failure is likely. All of the benefits listed above from using the Aspida360 platform will ultimately help to mitigate the high level of wealth transfer failure that HNW families experience.

If you’d like to have access the the tools and financial advisor coaching needed to ensure that HNW clients have a plan in place for successful wealth transfers, contact us today to learn more about Aspida360 and our “more than money” motto when it come to HNW clients. You can also sign up for an upcoming, 60-minute webinar that will give you more information about Aspida360 and how we can help to grow your business to attract and retain HNW clients.