The Great Wealth Transfer is here. Over the next two decades, an estimated $124 trillion is in play, with $105 trillion expected to pass to heirs by 2048. Given what’s at stake, much of the industry’s focus has centered on engaging Next Gen beneficiaries and spouses.

While heir retention is crucial, there’s another dynamic at play receiving far less attention. It’s the likely transfer of assets from sizable estates to multiple beneficiaries.

The Hidden Challenges Of Managing Transferred Wealth

Consider this scenario: A client with a $10 million portfolio names five heirs to their estate. Even if all five beneficiaries continue to work with the same advisor, what was once a single high net worth relationship would become five separate households – each with its own preferences, personalities and planning needs. This could easily multiply an advisor’s workload without adding any additional assets under management.

Now imagine this dynamic playing out across an advisor’s entire book of business. The added administrative complexity could decrease the time once allocated to growth and prospecting while adding additional pressures beyond retention.

Efficiency And Adaptability Take Center Stage

To thrive in this environment, advisors will need to rethink how they run their practices. As they prepare for what’s ahead, they should aim to address a broader range of client needs — varying from sophistication levels to portfolio sizes.

Advisors who work with a wealth management partner that supports various business models, whether hybrid, fee-only or otherwise, may be better positioned to evolve their practices in response to the emerging market demands.

Here’s what they might look for:

Flexible Affiliation And Open Architecture: An open-architecture platform enables advisors to offer customized solutions that support their independence and doesn’t limit their offerings to proprietary products or confine them to rigid frameworks.

Technology That Scales: A smart tech stack – with digital onboarding, automated reporting, efficiency tools and a client-friendly interface can alleviate friction and optimize personalization. When properly managed, technology should enable advisors to serve more households without compromising the client experience.

Asset Portability And Multi-Platform Support: Next Gen heirs often arrive with outside assets. They also seek simplicity. Advisors can benefit from working with a platform partner that offers robust support for third-party integrations and accommodates an array of custodial relationships. Advisors that can easily manage or consolidate assets – across custodians and account types – will stand out from those who can’t.

Expertise And Customization Across Market Segments: Advisors who tailor strategies across the wealth spectrum will maintain relevance across generations. Mastering this feat requires ongoing training, a mindset shift and segmentation strategies built into both the advisor platform and client workflows.

A Strategic Vision And Plan For What’s Ahead: Advisors facing a high-volume, lower-asset environment stand to benefit from working with partners that have the foresight and flexibility to accommodate changing industry needs. Partners who maintain a pulse on advisors’ current and future needs will know how they can best lend support.

Flexible Independence Is A Competitive Advantage

The Great Wealth Transfer is often framed as an opportunity – and it is. But opportunity doesn’t come without complexity. Advisors who maximize efficiency and deliver customized solutions will be ready to meet the varied needs and expectations of a diverse client base.

With the historic transfer of wealth now underway, it’s time for advisors to assess their infrastructure, evaluate their partnerships and refine their processes to prepare for what lies ahead. Those who align with partners that offer flexibility, scale and future-focused support will be well-equipped to turn the challenge of wealth fragmentation into an advantage.

Independence alone is powerful. Combining it with flexibility offers an added advantage to help advisors thrive in the next era of wealth management.

Read the article on Wealth Solutions Report.