EY, or Ernst & Young Global Limited, offers guidance for wealth managers and private banks to adapt to the changing landscape of inheritance and wealth transfer. Wealth managers need to rethink their approach to inheritance, focusing on understanding the needs of female and younger inheritors, and empowering relationship managers with the right tools and training. The narrative around inheritance should shift from succession to legacy and family protection, ensuring client conversations are centered on preserving wealth. Wealth managers should engage inheritors early and execute strategies with patience, fostering trust and long-term relationships. This structured approach is crucial for capturing assets and preparing for the significant intergenerational wealth transfer expected in the coming years. The insights are part of EY’s broader strategy for wealth management success through 2030.
| name | description | change | 10-year | driving-force | relevancy |
|---|---|---|---|---|---|
| Focus on Female Inheritors | Wealth management firms recognizing the unique needs of female inheritors. | Shift from male-focused wealth management to understanding female inheritors’ needs. | In 10 years, wealth management will be more inclusive, focusing on the unique needs of female clients. | The growing wealth of women and their increasing role in financial decision-making. | 4 |
| Engagement with Younger Beneficiaries | Wealth managers need to cater to the preferences of younger beneficiaries. | From a one-size-fits-all approach to personalized strategies for younger generations. | In 10 years, wealth management will have tailored services for younger generations’ diverse needs. | The generational shift in wealth and differing values around money management. | 4 |
| Shift in Inheritance Narrative | Changing the conversation around inheritance from anxiety to legacy and purpose. | From negative connotations of succession to positive discussions about legacy. | In 10 years, discussions about inheritance will focus on family protection and legacy building. | The need for peace of mind in wealth transfer discussions. | 5 |
| Utilization of Technology in Wealth Management | Adoption of AI and specialized training for wealth managers. | From traditional methods to technology-driven engagement strategies. | In 10 years, wealth management will heavily rely on AI for client engagement and strategy. | The increasing demand for efficiency and effectiveness in client interactions. | 5 |
| Patient Client Engagement Strategies | Wealth managers adopting gradual engagement approaches with clients. | From immediate, transactional interactions to long-term, trust-building strategies. | In 10 years, wealth management will emphasize lasting client relationships over quick gains. | The recognition that wealth transfer is a long-term process requiring trust and education. | 4 |
| Intergenerational Wealth Transfer Focus | Wealth management strategies increasingly targeting intergenerational transfers. | From focusing solely on current wealth holders to including future inheritors. | In 10 years, wealth management will expand to comprehensively address intergenerational needs. | The largest wealth transfer in history necessitating tailored approaches for future generations. | 5 |
| name | description | relevancy |
|---|---|---|
| Understanding Underserved Client Segments | Wealth managers need to better understand the unique needs of female and younger inheritors, who have historically been underserved. | 4 |
| Ineffective Communication on Inheritance | Conversations about inheritance often generate anxiety rather than peace of mind; a narrative shift is essential for client trust. | 4 |
| Lack of Confidence Among Wealth Managers | Many firms lack the confidence to initiate transformations necessary for addressing inheritance challenges and meeting client needs. | 3 |
| Insufficient Preparation for Generational Wealth Transfer | Firms must prepare for significant intergenerational transfers of wealth and related challenges, such as different values and relationships. | 5 |
| Need for Specialized Training | Wealth managers may not have the necessary skills or knowledge to effectively engage with diverse client needs around inheritance. | 4 |
| Failure to Adapt to Future Client Demands | Wealth managers risk falling behind if they do not anticipate future trends in areas like sustainability and digital assets. | 4 |
| Trust and Long-Term Client Relationships | Building trust through gradual engagement is critical, yet many wealth managers may struggle to maintain this over time. | 4 |
| name | description | relevancy |
|---|---|---|
| Focus on Female and Younger Inheritors | Wealth managers are emphasizing the unique needs and preferences of female and younger beneficiaries in wealth management strategies. | 5 |
| Transforming the Inheritance Narrative | Shifting discussions from succession to family protection and legacy to alleviate client anxiety about inheritance. | 4 |
| Proactive Client Engagement | Wealth managers are adopting strategies for early engagement with inheritors through pre-emptive onboarding and education. | 4 |
| Specialized Training for Relationship Managers | Wealth management firms are investing in training and AI tools to empower relationship managers for better client interactions. | 4 |
| Long-Term Client Engagement Strategies | Emphasizing gradual and patient engagement with clients to build trust over time, especially regarding sensitive topics. | 5 |
| Customized Operating Models for Wealth Transfers | Developing tailored business models for managing intergenerational wealth transfers to enhance client relationships and asset retention. | 5 |
| description | relevancy | src |
|---|---|---|
| AI tools that assist financial advisors in engaging with clients and enhancing their service offerings. | 4 | 18fc966e24c3f498471d55b81c483b22 |
| Investment strategies focused on sustainable practices and responsible management of resources. | 4 | 18fc966e24c3f498471d55b81c483b22 |
| Financial assets that are created and managed in a digital format, including cryptocurrencies and tokenized assets. | 5 | 18fc966e24c3f498471d55b81c483b22 |
| Investment opportunities outside of traditional stocks and bonds, often involving unique assets or strategies. | 4 | 18fc966e24c3f498471d55b81c483b22 |
| Innovative structures for charitable giving that facilitate better engagement and management of philanthropic efforts. | 3 | 18fc966e24c3f498471d55b81c483b22 |
| Specialized knowledge and practices that help families manage wealth transitions and governance structures effectively. | 4 | 18fc966e24c3f498471d55b81c483b22 |
| name | description | relevancy |
|---|---|---|
| Changing Inheritance Narratives | The need to shift conversations about inheritance from anxiety to family protection and legacy preservation. | 4 |
| Understanding Diverse Beneficiaries | The importance of recognizing the unique needs and preferences of female and younger inheritors in wealth management. | 5 |
| Empowering Relationship Managers | The necessity for wealth managers to equip their front-line staff with skills and resources to engage clients effectively. | 4 |
| Pre-emptive Onboarding of Inheritors | The strategy of engaging inheritors early to educate and prepare them for wealth management. | 4 |
| Long-term Client Engagement Strategies | The requirement for patience and gradual engagement in discussions about legacy and inheritance. | 4 |
| Sustainability and Digital Assets Demand | Anticipating increased interest in sustainability, digital assets, and alternative investments among inheritors. | 3 |
| Intergenerational Wealth Transfer Strategies | The need for tailored business models to capture assets during donor lifetimes and prepare for future beneficiaries. | 5 |