3 tips for advisors on connecting with heirs for estate planning

Bringing children into estate planning conversations is crucial to both clients and their advisors, but as with many important things in life, the hardest part can be just starting. 

“A lot of parents really spent so much of their time and energy building this wealth for their families … that they forget about the next most critical piece, which is really communicating that to their family or educating their children,” said Kris Yamano, a partner at Crewe Advisors, a registered investment advisor based in Salt Lake City. 

Failing to communicate with children about estate planning could mean costly, bitter disputes in the event of a parent’s passing away. It could also take away the opportunity to help the younger generation slowly flex wealth-building muscles, understand their place in the family’s future and prepare to one day take over management of family assets. And the problem is common: A Cerulli Associates report from earlier this year found that over half of heirs (among surveyed wealthy investors) did not know what they would inherit until the giver’s death. 

Cerulli predicts around $84 trillion will pass down through 2045, most of it to heirs. Advisors who can help clients communicate their legacy to those heirs will be much more likely to retain the business of that family when the assets pass down. 

Financial Planning spoke with experts from across the industry on how to help clients broach the estate planning conversation with children, and how advisors can succeed in building that critical relationship with the next generation in their books of business. Below are some tips they shared.