Wealth in motion: Advisers face the reality of the great transfer

The long-anticipated intergenerational wealth transfer is not a distant concept, it is happening now. That was the strong message from a panel of senior advisers at the Investment Leaders Forum INZ, who argued that trillions of dollars in capital are already moving between generations, reshaping the private wealth landscape in real time.

Peter Leggett, executive chairman at Arrow Private Wealth, was unequivocal. “It’s actually happening. It’s not something that’s in the future. The youngest baby boomers turned 60 last year. There is an explosion of money in transition,” he said. Longevity, he added, means families are having succession conversations far earlier, not just after death.

David Leon, director at Stellan Capital, stressed that for advisory firms this represents a “10-year scorecard” challenge. His firm’s average clients are aged between 50 and 70, and their children often have just a fraction of their parents’ wealth. “Sixty per cent of our clients haven’t told their kids how much wealth they have, and 50 per cent are completely unprepared to transfer it,” Leon noted.

The business opportunity is clear. Advisers that can capture those intergenerational relationships will double their footprint, but Leon cautioned that scale is a key question. “Do you want to look after those kids, and if you do, do you have the capacity to deliver?” he asked.

For Patrick Fogarty, principal at Rutherford Rede, the solution lies in education. He now advocates child portfolios as a matter of course, whether clients request them or not. “It creates financial awareness, educates the kids, brings them into the fold, and inoculates them from poor decision-making down the track,” he said.

Nicola Beswick, managing principal at White Rabbit Advisory, added that firms need the right people to engage the next generation. “A client asked me recently if we had an under-35 package. I didn’t, but it was a great idea. You need advisers who can relate to those kids,” she said.

Leggett agreed that relationship management must evolve. He cited research showing that after a client death, 92 per cent of investment funds leave the existing adviser, with 64 per cent moving to a spouse. “Are we engaging with partners, with children, with grandparents? These are the conversations clients want to have,” he said.

For advisers, this means shifting away from performance-centric conversations towards values-based discussions. Leggett described it as talking about “hearts and minds” issues, not investment returns. Fogarty agreed, saying his firm uses cash-flow modelling and simulations to show clients that multiple generations will be secure. “The impact is profound when clients see their grandchildren’s education is covered,” he said.

Technology and communication styles also matter. Leon said Stellan is redesigning its tech stack to ensure information is delivered in ways younger clients prefer. “The next generation consumes advice differently. They want text, apps, platforms. We have to adapt,” he said.

The panellists agreed that being proactive is essential. Hosting educational boardroom sessions for clients’ children, offering complimentary planning reviews, or running seminars on tax and succession can all spark engagement. Leggett said his firm now positions itself as a “trusted steward of generational wealth,” managing families rather than just portfolios.

Beswick emphasised the opportunity for advisers to broaden their role. “We need to capture the unadvised clients inheriting wealth. That means educating estate lawyers, accountants and other professionals to refer families at the point of transition,” she said.

The consensus was clear: the great transfer is already underway, and advisers who focus on relationships, education and intergenerational trust will be the ones to capture it. As Leggett put it, “Our ideal clients are looking for someone to sit at the centre of their world. That should be us”.

Laurence Parker-Brown

Laurence Parker-Brown is head of content at The Inside Network and managing editor of The Inside Adviser and Investor Strategy News.