It is difficult for clients to talk to their children about the family’s wealth. However changes in generational behavior and each generation’s own needs are bringing that conversation to the table as the new US Trust 2012 survey reveals.
We have all heard stories about having to take a parent out of their homes kicking and screaming in order better manage their health and safety. Then there are stories about disinherited children, picking so-called favorites and leaving more money to charity than to family members. The tides are shifting to more purposeful planning and the economic climate has a lot to do with it.
So much has impacted one’s net worth today. Just read the newspapers and you’ll see that people have lost over 40% of their net worth. The younger generation is not holding back in seeking advice on how to best plan for their future. They have a feeling that they will be left bearing the brunt of ill prepared parents and needy children.
Alternatively, boomers are not creating comprehensive plans. While they describe themselves as very private people, they believe that their wills are adequate for their planning needs. Has any one informed them that a will is a public document?
Advisors need to think about how they are communicating with their clients and prospects. There’s a lot more on the minds of the high net worth these days. Getting them to share some of what is keeping them up at night can open the door to endless possibilities.
We agree with a lot of the survey’s findings and would like to hear what you are experiencing when working with a high net worth client.