What clients want you to know about transferring wealth to their heirs

investmentnews.com:

Transferring significant fortunes to heirs is a major concern among clients and they are keen to ensure that their priorities are met as an estimated $84 trillion in assets is passed down over the next 20 years.

Raymond James recently surveyed investors with at least $500,000 in investible assets to determine what matters most to them when it comes to intergenerational wealth transfers.

As is often the case with finances, having a robust plan that is communicated and executed effectively is key. Given the high-risk of family fortunes leading to family feuds, ensuring everyone’s expectations are met is essential for advisors.

Interestingly, although only 45% of respondents said they were ‘extremely transparent’ with their own heirs, 71% said that if they were in line for an inheritance they would consider proactive communication important.

“The most important factor in executing a smooth transfer of wealth is having a documented plan in place and to regularly revisit that plan over the years to make sure it’s properly representing your current wishes,” said Joe Weaver, president of Raymond James Trust. “The most common reasons for a break down in a client’s plan are, first, the absence of preparation and taking the time to put appropriate documents in place. Second is not thoroughly communicating their intentions to those impacted.”

Keeping the peace is a high priority with 87% saying so and communication and transparency the ways they expect to achieve it. However, too few people speak with their family about their wealth and how it will be passed on.

“For many, an ideal scenario would be to take a set dollar amount and divide it equally among heirs, but that’s rarely the case,” added Weaver. “With illiquid assets to