Great wealth transfer drives multi-generational planning

ROCHESTER, N.Y. — As the “great wealth transfer” — a decades-long shift expected to move $84 to $124 trillion from baby boomers to heirs and charities — gains momentum, financial advisory firms are seeing a shift too, with an increase in serving entire families, rather than individual clients. Here’s how they’ve prepared and are succeeding.

“Muli-generational planning isn’t just about transferring assets — it’s about building long-term relationships, preserving family values, and ensuring each generation feels supported and prepared,” said Elizabeth Thorley, CFP, founder and CEO of Thorley Wealth Management in Rochester. “We want families to know that as their lives evolve, we’ll be there to guide them every step of the way.”

Thorley’s firm has prepared for the great wealth transfer by intentionally developing the next generation of advisers within the firm so they can seamlessly serve the children and grandchildren of long-standing clients.

“We also encourage families to talk openly about the purpose of their wealth,” Thorley said. “What values do they want to pass on? What opportunities do they hope to create for the next generation? How involved do they want their children to be in financial decision-making? These conversations help align the family’s goals with the planning process.”

They also take a collaborative approach, bringing together family members and their other trusted professionals — tax, legal and insurance — to ensure the wealth transfer plan is comprehensive and coordinated.

The firm is seeing families bring their children into the planning process much earlier than in the past, with parents noting they want their children to benefit from the financial education and professional guidance they themselves wished they’d had sooner.

“There’s also been a noticeable shift toward greater transparency around family finances,” Thorley said. “Families are more willing to have open conversations about money so younger generations understand the responsibilities that come with managing wealth and are better prepared for a smooth transfer of assets.”

Some tips Thorley has for families just beginning the wealth transfer process are to:

• Start by clarifying your family’s values around money. Write them down and share them with the next generation. What do you want your wealth to accomplish for you and for them?
• Encourage younger family members to articulate their own values as well.
• Involve the younger generations with your professional advisers, as it is an effective way to build financial literacy and help them understand the responsibilities that come with managing wealth.

Veronica Van Nest, JD, a senior wealth management consultant at Manning and Napier in Fairport, New York, has also seen a shift over the past five to ten years of individuals with wealth being more willing to share financial information with their children and grandchildren.

“It used to be pretty private even within your own family, whether for privacy or motivation purposes,” said Van Nest, who is also a vice president and trust officer of Exeter Trust Company, a New Hampshire Chartered Trust Company that is an affiliate of Manning & Napier.

Van Nest says some of this change is driven by the younger generations, who are digital natives and more interested in being part of the discussion because they’re more aware of and interested in financial planning in general.

“With the younger generation being so tuned into technology, I think that they’re learning through online resources and becoming more curious than past generations,” Van Nest said. “I’ve definitely noticed a shift with parents sharing this information with their kids, which used to not always be the case.”

When working with multiple generations, she finds it very important to have all of the generations involved in the discussion, preferably in person, but if that’s not an option due to geography or other factors, via video conferencing.

“I enjoy these family meetings because there are different elements involved,” Van Nest said. “There’s education for the younger generation and planning for the older generation, so it brings everything together.”

Van Nest says a challenge of multi-generational planning can be the education piece because every generation involved is coming from a different financial literacy standpoint, so it’s important for one’s financial advisory team to be cognizant of the fact that everybody’s not coming to the discussion with the same knowledge level.

Imparting knowledge about the person or people who created the family’s wealth is also important to Van Nest and her team.

“We encourage clients with significant wealth who are creating multi-generational trusts to write a letter that stays with their record so that future generations that don’t or won’t know them will have some guidance as to what they intended,” Van Nest said. “That’s the type of thing that you don’t typically get in the estate plan or legal documents that is really important to all the generations.”

Matthew Tipple, head of Upstate New York at J.P. Morgan Private Bank, says the bank has also seen a surge in multi-generational activity as more and more families start thinking about how their wealth plays a role in preserving their values. This can range from creating a long-term focus on philanthropy to ensuring the next generation achieves educational or professional goals

“This requires open communication, clear governance structures, and strong operating models — and the right team of advisers to help guide the process,” Tipple said.

While they’ve worked with families for over two centuries, J.P. Morgan made a significant investment in the multigenerational planning space when it formally launched its Family Office Practice in 2023.

“We bring everything from the nuts-and-bolts of managing your wealth and your lifestyle to education and advice for the next generation,” Tipple said. “We also are always growing our team, which means we have employees of all ages and experiences who can connect with our clients, their children, and their grandkids.”

Tipple says that working with multiple generations starts with understanding each family member’s goals and interests; bringing in the right experts so everyone understands the available options; and then ensuring there is communication so everyone can work together on a comprehensive strategy that achieves the family’s goals.

“The best part of my job is that every day we help families align their values and their finances into a plan for their future,” Tipple said. “This requires honest communication, a team of experts, and hard work, but the result benefits both the family and our broader community — and is worth it.”

Tipple says that when it comes to multi-generational planning with your own family, it’s critical to have a team of advisers whom you trust and who have the right expertise and capabilities, including a wealth adviser, an attorney, and an accountant.

“When you are talking about multi-generational wealth transfers, it’s also important to think about working with an institution that can continue serving you as your family’s wealth grows and that will be around for your children and their children,” he said.