Retaining Clients Through Generational Connections 

In any business, the adage remains true: retaining clients is far more cost-effective than acquiring new ones. For attorneys, accountants, and financial advisors—particularly those specializing in tax and estate planning—the stakes are even higher when navigating the poignant transition following a client’s passing. This period is fraught with not just legal and financial challenges but also emotional complexities as heirs come to terms with their loss and the implications for their future. 

Research paints a stark picture: a staggering 75% of parents report that their financial advisors have never made an effort to connect with their children. Moreover, fewer than 10% of heirs continue the professional relationship with their family’s advisor after inheriting. This high turnover can signify a failure in client relationship management and illustrate potential missed opportunities for client retention. 

Continue reading: What to do with an inheritance

Why is connecting generations meaningful?

The financial advisory landscape is rapidly evolving, and families today face unprecedented complexity in managing multi-generational wealth. When advisors establish genuine relationships with younger generations early in the process, they create a bridge that connects traditional wealth management with contemporary values and expectations.

Meaningful generational connections serve as the bedrock for sustainable client retention because they address a fundamental shift in how families approach financial decision-making. Today’s heirs aren’t simply passive recipients of wealth—they’re active participants who want to understand, influence, and shape their family’s financial legacy.

Furthermore, generational engagement demonstrates an advisor’s commitment to the family’s long-term success rather than just immediate transactions. An inter-generational approach is particularly vital for ultra-high-net-worth families who need sophisticated estate planning for generational wealth that must adapt and evolve across decades.

Why younger generations should get invested now

First and foremost, younger generations contribute fresh thinking about impact investing, sustainable business practices, and modern philanthropic strategies. They tend to share the global perspective and social consciousness that looks to define philanthropy moving forward, and can help make sure their families are prepared for the future. 

Early engagement also allows younger generations to develop the financial literacy and emotional intelligence necessary for responsible wealth stewardship—making continuity much more feasible for families looking to transfer wealth to the next generation. Rather than inheriting complex financial structures they don’t understand, they become educated partners who can make informed decisions about everything from investment strategies to new family philanthropy initiatives.

How do we retain clients with philanthropy?

To foster relationships that endure across generations, advisors must proactively engage the next generation long before the client’s passing. This engagement can take many forms, including: 

• Education and empowerment: Invite clients’ children to participate in family meetings, estate planning discussions, and even informal gatherings. This exposure can demystify the advisor’s role and the family’s financial landscape. 
• Personal touchpoints: Simple gestures, such as birthday or holiday cards, can effectively foster familiarity. Stay connected through open conversations about interests and ambitions. 
• Career guidance: Offer to counsel clients’ children on career choices and provide networking opportunities. Building rapport through mentorship can position you as a trusted advisor, not just during an estate transition but throughout their financial journeys.

Philanthropy: a powerful family connection and client retention tool

Among the many avenues for cultivating intergenerational bonds, philanthropy stands out as a powerful and meaningful way to engage with clients and their heirs. For many clients, the legacy they leave behind is as much about values and social impact as it is about financial assets. Here’s how advisors can effectively harness the power of philanthropy to retain family clients through Greater Houston Community Foundation: 

1. Local philanthropic partner: Encourage clients to collaborate with the Community Foundation to establish family donor advised funds, field-of-interest funds, or designated funds. These cost-effective tools simplify charitable giving and allow families to engage in philanthropy together. 
2. Customized family services: Recommend that clients take advantage of the Community Foundation’s services that can identify family members’ interests, organize site visits to local charities, and provide educational resources on charitable giving basics and community impact. 
3. Facilitated family dialogues: The Community Foundation can facilitate discussions among family members, ensuring that everyone’s voices are heard. Creating a platform for dialogue fosters a collaborative spirit around shared values and philanthropic goals. 
4. Tax-savvy giving strategies: Share resources regarding the tax benefits of charity, and the advantages of donating noncash assets like real estate and business interests. This strategy not only maximizes the tax benefits but also showcases smart financial planning—a lesson heirs can take to heart. 

Continue reading: Giving With Clarity: The Power of Intentional Giving in Family Philanthropy

Beyond cash: considering noncash assets 

To enhance your clients charitable giving and financial planning, advisors should also discuss the strategic transfer of noncash assets such as real estate, collectibles, and business interests. These assets can hold profound value for families and open up discussions about how they can be used to further philanthropic interests.  

Consider Greater Houston Community Foundation as part of your  trusted circle of advisors, providing valuable insight and support in navigating the complexities of charitable planning. With the Community Foundation as your philanthropic partner, advisors can guide families in: 

• Establishing value: Help families understand the true value of noncash assets, including their potential for charitable donations, sales, or as bases for future family ventures. 
• Asset transition plans: Develop transition plans that respect family values and commitments while ensuring the sustainable management of noncash assets through future generations. 
• Legacy building: Highlight ways noncash assets can serve both personal and philanthropic goals. For instance, a family business might be positioned to support community initiatives or scholarships in the family’s name.

The bottom line: the lasting impact of connection & values

While any conversation with a client’s child or grandchild can enhance the likelihood of client retention, discussing philanthropic goals creates a rich opportunity for meaningful engagement. By fostering connections rooted in shared values and community impact, advisors can bridge generational gaps that often lead to disconnects. The relationships you build today will not only sustain your practice but also enrich lives across generations, fostering a brighter future for families and communities alike. 

As a premier philanthropic organization in Houston, Greater Houston Community Foundation has the expertise and resources to help you and your clients achieve their charitable goals. By partnering with us, you can tap into our knowledge of the community, our experience in creating customized giving plans, and our ability to create meaningful impact. 

We’re committed to helping you and your clients make a difference in the lives of those around us. Contact  Andrea Mayes today to discover how our expertise can seamlessly integrate your clients’ charitable giving goals into their estate planning strategies.  

Whether you’re looking to start a donor advised fund, wondering how to open a private foundation, or have already founded a private foundation and are looking for family foundation consulting, Greater Houston Community Foundation is here for you. 

More Helpful Articles by Greater Houston Community Foundation: 

• What is the Great Wealth Transfer?
• The Power of Collective Giving
• How To Get Started with Legacy Giving
• The Future Is Now: What Is Next-Gen Philanthropy?
• Power of Volunteering: Harnessing the Spirit of Service and Partnership 

This website is a public resource of general information that is intended, but not promised or guaranteed, to be correct, complete and up to date. The materials on this website, including all comments and responses to comments, do not constitute legal, tax, or other professional advice, and is not intended to create, and receipt or viewing does not constitute, nor should it be considered an invitation for, an attorney-client relationship. The reader should not rely on information provided herein and should always seek the advice of competent legal counsel and/or a tax professional in the reader’s state or jurisdiction. The owner of this website does not intend links on the website to be referrals or endorsements of the linked entities.