Sales & Marketing | 08.18.26

Growing Your Practice Through Multigenerational Beneficiary Planning

by: Dr. Tyler De Haan, CFP

After more than two decades in the financial services industry, I’ve seen many professionals excel at addressing individual client needs. However, expanding the planning focus to include immediate and extended family can uncover significant growth opportunities. As the Great Wealth Transfer unfolds, a multigenerational strategy grounded in behavioral insights, economic trends and proactive planning can create meaningful value for both baby boomers and their heirs.

According to a 2024 Cerulli report, over the next 20 years, it is estimated that between $84 and $124 trillion in wealth will change hands in the United States. This generational transfer from baby boomers presents both challenges and opportunities. The main challenge is asset retention. Research from Kehrer Group shows 13.7% of widows change financial professionals after their spouse dies. For children who acquire wealth, that number jumps closer to 70%. These trends highlight a major retention risk, as assets can disappear within 12 months of an owner’s death. At the same time, this demographic shift creates opportunities to leverage family relationships to create multigenerational cross-selling connections.

Familiarity bias plays an important role in multigenerational planning, as individuals often gravitate toward what they already know and trust. As a result, family introductions can strengthen relationships and increase client retention across generations. At the same time, understanding family dynamics helps guide clients toward long-term goals. A study by Fidelity shows 52% of parents have not discussed their net worth with their children. However, 97% of families recognize the importance of these, presenting an ideal opportunity to help facilitate them.

Working with clients and their extended family has many benefits. First, it provides better context for how individuals respond to money. Spending and saving habits are often shaped by family behavior, with spenders and savers typically reflecting the patterns they grew up with. In my experience, risk tolerance is also similar among family members. The multigenerational approach provides valuable insight into family dynamics. This framework encourages communication about the family’s net worth.

Second, multigenerational planning helps retain assets after a client’s passing by strengthening relationships with beneficiaries before wealth transfers occur. Research conducted by The Harris Poll shows beneficiaries who remain with the same firm often cite shared values and established trust with their parent’s financial professional, underscoring the role strong family relationships play in retaining assets under management.

Third, multigenerational planning creates opportunities for asset growth. A client’s extended family opens the door to cross-selling, as individuals at different life stages have varying financial needs, from Roth IRAs and 529 plans to long-term care, life insurance and 401(k) rollovers. These opportunities grow as family members experience key life events. One of the most significant, and often overlooked, occurs when a client passes away. At that point, illiquid assets such as homes and businesses are often sold, creating substantial liquidity for reinvesting. These transactions can reach six or seven figures, offering a critical opportunity to retain and grow assets.

From a business perspective, a multigenerational approach can increase a practice’s value by extending asset retention and growth. Serving multiple generations keeps assets in place longer, while younger family members often in earlier accumulation phases offer additional growth potential, making the practice more attractive to buyers.  

Building a multigenerational practice can begin by prospecting within the family network. Here are six tips:

1. Ask about your clients’ beneficiaries. After reviewing a client’s plan, ask how their beneficiaries are doing. Listen for signs they may benefit from guidance and suggest a joint meeting to discuss individual or family planning concerns.
2. Ask what your clients want their legacy to be. Conduct a beneficiary review at least annually and evaluate whether clients’ legacy goals align with their current financial plan.
3. Emphasize the importance of having a family meeting. Encourage clients to bring family members together to ensure alignment and encourage early discussions. These conversations can uncover assumptions that may impact the estate plan, for example, discovering an heir may not want to inherit a family asset such as a cabin or business.   
4. Encourage clients to document key contacts. Suggest creating an “In Case of Emergency” file that includes important contacts such as attorneys, CPAs, doctors, bankers and other trusted professionals. Providing an emergency planning booklet can help clients organize this information and store it in a secure location accessible to spouses or beneficiaries if needed.
5. Conduct estate and legislative reviews when laws change. Estate plans can quickly become outdated as legislation and regulations evolve. Regular reviews help identify planning opportunities and can prevent beneficiaries from facing unnecessary taxes or expenses after the owner’s death.
6. Ask whether additional family members could benefit from financial guidance. This question can be especially effective at the end of a meeting, as existing family relationships and familiarity often increase the likelihood of building trusted, long-term client connections  

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Dr. Tyler De Haan, CFP, is director of advanced sales at Sammons Institutional Group, where he leads education for financial advisors on advanced planning concepts and behavioral strategies. With over 20 years of experience, he develops advisor-focused content to support more effective client conversations.

Sources
^1. Cerulli Associates. “Cerulli Anticipates $84 Trillion in Wealth Transfers Through 2045.” Cerulli Associates, 2024, https://www.cerulli.com/press-releases/cerulli-anticipates-84-trillion-in-wealth-transfers-through-2045.

^2. Kehrer Group. “Widows Don’t Fire 70% of Their Advisors: How a Misunderstood Statistic Shaped an Industry Narrative.” Kehrer Group, 18 Mar. 2024, https://kehrergroup.com/2024/03/18/widows-dont-fire-70-of-their-advisors-how-a-misunderstood-statistic-shaped-an-industry-narrative/.

^3. Cerulli Associates. “Aging Boomers Bring Intergenerational Planning to the Forefront.” Cerulli Associates, 2023, https://www.cerulli.com/press-releases/aging-boomers-bring-intergenerational-planning-to-the-forefront.

^4. Fidelity Investments. The Five Myths of Wealth Transfer. Fidelity Investments, https://www.fidelity.com/viewpoints/wealth-management/insights/five-myths-of-wealth-transfer.

^5. The Harris Poll. “America’s Great Wealth Transfer: Young Clients Want Human Connection with their Financial Advisors.” The Harris Poll, 2026, https://theharrispoll.com/articles/americas-great-wealth-transfer-young-clients-want-human-connection-with-their-financial-advisors/

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed and/or Registered Representatives will be paid a commission on the sale of products distributed by Sammons Financial Network®, LLC.

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