Building long-term relationships: The importance of intergenerational planning and consistency of advice

According to the Capgemini World Wealth Report 2025, the global high net worth (HNW) population rose 4.2& in 2024.  

The world’s millionaire population, meanwhile, increased by 600,000. And while 94% of these were in the US, the report does raise some important questions for UK high net worth individuals (HNWI) too. 

Questions around the so-called “Great Wealth Transfer”, for example, and the importance of imparting valuable money lessons before your children inherit. And around the need for a consistent advisory voice, spanning generations. 

While views on money and attitudes to factors like risk and the rise of cryptocurrency will understandably vary between baby boomers and the generations that follow, some bedrocks of sound financial planning remain. 

Younger generations often have different attitudes to money and different expectations regarding advice  

As a HNWI, you’ll be keen to leave a meaningful and tax-efficient financial legacy to your children. In passing on your hard-earned wealth, you’ll also want to know that your money is in safe hands.  

The Capgemini report confirms that 81% of next-generation HNWI will switch from their parents’ wealth manager or adviser within two years of receiving their inheritance. This highlights the gulf in money attitudes between generations. 

A Professional Adviser report back in 2023 confirmed that 32% of baby boomers were reluctant to pass on their wealth to someone who didn’t share their attitudes to money.  

But money attitudes are formed young, and the environment we grow up in plays a huge part. Baby boomers, growing up in the post-war years, are generally focused on wealth preservation, while younger generations have the time to take greater risk. They also have increased knowledge of, and access to, newly emerging parts of the finance space, like cryptocurrency and financial influencers. 

In this ever-changing landscape, access to professional, regulated, and experienced advisers is key. 

Sharing valuable money lessons and honest communication are key to positive money relationships 

While the government confirms that attitudes to money are formed from as early as age seven, personal finance is a lifelong journey.  

Imparting valuable money lessons throughout a child’s life will ensure they’re in the strongest position to effectively manage their inheritance when they receive it. 

These lessons might include: 

• The value of money and the difference between saving and spending 

• The importance of a rainy day fund and paying your future self 

• How to open a bank account and how overdrafts work. 

As your children grow, you might introduce new lessons, like:  

• How a mortgage works and building a good credit rating 

• Compounding and why it’s so important for long-term growth  

• How to spot financial scams and the value of professional advice. 

Communication is key, and frank discussions can prevent money from becoming a taboo topic. They can also ensure that all parties know where they stand in terms of a potential future inheritance, and your expectations for how that money is spent. It might be placed in trust, for example, with stipulations on usage or when it can be accessed. 

With everyone on the same page, you have the opportunity to plan for the long term and even into the next generation. 

A sudden inheritance can be scary for the ill-prepared 

Whoever you leave your money to, a sudden large inheritance can be a shock if you haven’t communicated this in advance. 

You’ll want to instil in your children the importance of avoiding hasty decision-making and the importance of a cooling-off period.  

An inheritance might also force your beneficiaries to think about their long-term finances for the first time. That could mean tax-efficient pension planning or ISA investing, or the need to put a will in place. 

It’s also worth remembering an often-overlooked point about the Great Wealth Transfer.  

Due to differences in life expectancy, the first transfer of wealth is often from a deceased male to their female spouse. 

Differing attitudes to money between genders mean that communication is key here too.  

Making sure that the advice you receive includes all members of your family can ensure that everyone feels included from the outset. This allows you to make long-term plans that are joined up, collaborative, and consistent, even when individual aims differ. 

Get in touch 

If you have any questions or concerns about your legacy, please reach out to your Foster Denovo adviser by emailing advise-me@fosterdonovo.com or calling 0330 332 7866 for more information.  

Please note 

This article is for general information only and does not constitute advice. The information is aimed at retail clients only. 

The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing. 

When investing your capital may be at risk.