The $90 Trillion Question: Are Your Investor Clients Prepared for Their Inheritance?

Over the next two decades, $90 trillion will change hands in the largest intergenerational wealth transfer in history.¹ With that massive transfer of wealth comes unprecedented opportunities for wealth management firms. The most recent wave of our Trajectory of Intergenerational Wealth Transfer^™ report digs into the specific opportunities around estate planning and offers insights on how financial services firms must align their offerings and communication strategies with the estate planning readiness, needs and motivations of affluent investors to gain a competitive edge.

The Estate Planning Opportunity Is Massive

Understanding who is prepared for estate planning is the first step to effective outreach. Escalent’s Cogent Syndicated research says nearly all affluent investors—95%—represent opportunities: 31% lack a will or trust and, of the 69% who do have a will or trust in place, 93% (64% overall) are young enough to require reviews and possible updates before reaching life expectancy (79.4 in the US).² When analyzed by whether investors expect to receive an inheritance in the next decade, we identified four distinct estate planning opportunity segments—each with unique needs and motivations.

How Can Asset Managers Capitalize on the Estate Planning Opportunity?

Asset managers can maximize the wealth transfer opportunity by tailoring services and communication strategies to the unique motivations of these four affluent investor segments:

1. Inheritors with a will/trust seek investment growth to support charities and enjoy life.
2. Inheritors without a will/trust are driven by financial achievement to make a positive impact.
3. Non-inheritors with a will/trust are focused on leaving a legacy for family and contributing to community causes.
4. Non-inheritors without a will/trust value both financial achievement and philanthropy.

Nearly half (48%) of affluent investors who already have estate plans independently chose their attorneys, 22% used employer-provided legal services and 13% used an online estate planning option, while 28% who don’t yet have a will or trust intend to use an online standardized option. Yet the estate planning landscape is evolving quickly. Increasingly, investors without estate plans—especially Millennials—are turning to financial advisors (51%) and digital tools (36%) for guidance.

Wealth transfer poses challenges including probate, taxes, legal requirements and complex family dynamics, particularly for those expecting an inheritance soon. Asset managers have an opportunity to address these issues and become the go-to resource for estate planning services (whether firms offer them in-house or by referral) including legal matters, supporting clients through family complexities, and integrating legal services, financial advice and digital solutions.

How Can Financial Services Firms Lead the Great Wealth Transfer?

Succeeding in the great wealth transfer depends on balancing digital communications favored by younger clients with the personalized service preferred by older generations and tailoring strategies to high-value market segments and client needs.

Cogent Syndicated’s research report, Trajectory of Intergenerational Wealth Transfer, draws on insights from nearly 5,000 affluent investors (with $100K+ in assets) to provide actionable guidance for advisors and asset managers seeking to seize opportunities presented in this historic transfer of wealth. In the most recent report based on our second wave of research, we dive deeper into the estate planning opportunity segments among affluent investors, prioritizing their value for marketing by net worth, expected inheritance and age.

Click below to learn more about the report or contact us for a consultation to discuss how these findings can drive your firm’s growth.

¹Forbes. Great Wealth Transfer: How The $90 Trillion Windfall For Millennials Could Change The Job Market And Economy. March 1, 2024.

²Macrotrends. U.S. Life Expectancy (1950-2025). Source: www.macrotrends.net.