Insights
Wealth Transfer and the Next Generation: Why Relationships Must Begin Earlier
Retaining wealth across generations remains one of the most persistent challenges in wealth management. In this contributed article, KAR Senior Wealth Advisor Darnel Bentz explains why the real risk to retention rarely occurs at the moment assets transfer, but instead years earlier, when no meaningful relationship has been built with the next generation.
Rather than treating wealth transfer as a single transition event, Darnel argues that long‑term continuity depends on early engagement, evolving how advisors deliver value, and meeting younger clients where they are.
Here are three core themes from the article that frame how families and advisors can think more intentionally about preparing the next generation.
Relationships Must Begin Before the Transition
Darnel emphasizes that retaining the next generation starts well before wealth changes hands. When heirs first meet an advisor at the point of transfer, trust and relevance are often already missing. Early, consistent involvement helps close this gap.
When family dynamics allow, structured family conversations focused on values, decision‑making, and the philosophy behind wealth can be especially impactful. For families hesitant to begin there, philanthropy can provide a natural starting point. Involving children in charitable discussions introduces financial decision‑making in a way that feels purposeful and accessible, creating continuity in thinking, not just assets.
Why the Next Generation Expects More Than Investment Management
Investment management alone, Darnel notes, is unlikely to resonate with the next generation. Younger clients are often focused on immediate financial decisions such as workplace benefits, first‑time home purchases, insurance needs, and retirement plans.
Providing guidance in these areas allows advisors to add value before significant assets are involved and establish relevance early. Technology also plays a central role. Digital access, intuitive platforms, and real‑time visibility are no longer differentiators but expectations. At the same time, younger clients increasingly seek coordinated guidance across tax, estate, and risk management as part of a broader, more integrated advisory experience.
Education Builds Confidence and Long Term Continuity
A lack of preparation is one of the most overlooked risks in wealth transfer. When wealth arrives without context, heirs may struggle to make confident, disciplined decisions.
Darnel highlights how early education can change that trajectory. Whether through small managed accounts, planning tools, or ongoing conversations about financial choices, consistent exposure helps younger family members develop familiarity and confidence over time. The structure is less important than starting early and maintaining continuity.
Ultimately, Darnel believes retention is earned long before the transfer occurs. Advisors who engage early, provide value without immediate compensation, and adapt their approach to meet younger clients where they are may be better positioned to support families across generations.
Start a Conversation About Generational Wealth Planning
Preparing the next generation for wealth often requires early, thoughtful engagement that goes beyond assets alone. If you’d like to think through how these ideas apply to your family, a KAR wealth advisor can help frame the conversation and discuss an approach tailored to your goals.
You can read Darnel Bentz’s full contributed article on InvestmentNews here:
Winning Over the Next Generation Before the Wealth Transfer Happens
This information is based on KAR’s opinions at the time of the publication of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. The information provided here should not be considered to be insurance, legal, or tax advice and all investors should consult their insurance, legal, and tax professionals about the specifics of their own insurance, estate, and tax situations to determine any proper course of action for them. KAR does not provide insurance, legal, or tax advice, and information presented here may not be true or applicable for all investor situations. Additional information about KAR’s services and fees may be found in KAR’s Part 2A of Form ADV, which is available upon request or can be found at https://kayne.com/wp-content/uploads/ADV-Part-2A.pdf.
