Raymond James Survey

Investors’ Top Priorities for Safeguarding Generational Wealth

ST. PETERSBURG, Fla., Aug. 23, 2023 (GLOBE NEWSWIRE) -- Raymond James released the results of its recent survey of investors with half a million dollars or more in investible assets, revealing their priorities and concerns around transferring wealth to the next generation. Some estimates predict that up to $84 trillion in assets will exchange hands over the next 20 years – dubbed the Great Wealth Transfer – prior to which it’s essential to identify potential gaps and opportunities for investors to execute a successful transition, according to Joe Weaver, President of Raymond James Trust.

Key findings:

• 71% of respondents said proactive communication of wealth transfer plans would be important to them if they were receiving an inheritance, while 45% report being “extremely transparent” with their own heirs.
  
• 91% of respondents said that tax efficiency is “extremely” or “somewhat” important, but 37% answered “no” or “not sure” when asked if their wealth transfer plan includes tax efficient strategies.
  

• 54% of respondents agree that having a positive philanthropic impact is “extremely” or “somewhat” important to their intergenerational wealth transfer plan.

• 84% of respondents who work with a financial advisor have a documented intergenerational wealth transfer plan in place, compared to 66% who do not work with an advisor.

“The most important factor in executing a smooth transfer of wealth is having a documented plan in place and to regularly revisit that plan over the years to make sure it’s properly representing your current wishes,” said Weaver. “The most common reasons for a break down in a client’s plan are, first, the absence of preparation and taking the time to put appropriate documents in place. Second is not thoroughly communicating their intentions to those impacted.”

Communication with Heirs

Maintaining family harmony sits high on the list of priorities for investors, 87% of respondents said it’s important to them (60% “extremely”, 26% “somewhat”). This level of harmony is mainly achieved through proactive communication (7 in 10 say it’s important) and transparency. 89% indicated that, if they were inheritors, having clear and transparent expectations for who would receive what would be important.

However, understanding the value of communication is not the same as taking steps to start a conversation around wealth. More than half of American adults don’t talk about their finances and 23% would even rather talk about death, according to research from Empower.