One of the largest transfers of wealth in Canadian history is already underway. Over the coming years, hundreds of billions of dollars will move from one generation to the next as aging Canadians pass wealth to their children and grandchildren. For financial advisors, the size of the transfer is only part of the story. The bigger question is simple: Will the next generation stay with you when the assets transfer?
The Relationship Often Transfers Last
For many advisors, the relationship with a family has been built around one generation.
The parents are the clients. They attend the meetings, make the investment decisions, and have the established relationship with the advisor.
Their children may be familiar with the advisor. They may have met them a few times. They may even have accounts of their own.
But familiarity is not the same as trust.
When a parent passes away and significant assets transfer to their children, the next generation suddenly becomes responsible for financial decisions they may never have discussed with the advisor.
They may have different financial goals, different expectations, different communication preferences, and even a different view of what they want from an advisor.
That creates a retention risk.
The advisor may believe they have a multigenerational relationship.
The next generation may see it differently.
What Advisors Should Do Now
The wealth transfer should not be the first time an advisor builds a relationship with the next generation.
Start before the assets move.
Invite children into relevant conversations. Understand what they are building, what they care about, and how their financial lives differ from their parents. Introduce them to the planning process before they suddenly become responsible for managing significant wealth.
This does not mean trying to sell them something.
It means building familiarity and trust while there is still time.
The opportunity extends beyond children. Spouses, grandchildren, business partners, and other family members can all become part of the broader relationship around a client.
Advisors who think about the entire family rather than just the individual account can build relationships that are more resilient when wealth moves between generations.
The $1 trillion transfer is not simply an asset transfer.
It is a relationship transfer.
And the advisors who start building those relationships before the money moves will be better positioned to support the people who eventually inherit it.
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