As Baby Boomers and older generations pass assets to children and grandchildren, trillions of dollars in deposits, investments, and real estate equity are expected to change hands. This is often referred to as the Great Wealth Transfer.

The industry conversation has largely centered on the assets themselves. How much wealth will be transferred? How much will remain at a financial institution? How much could be gained or lost?

Those are important questions. However, they may not be the most important.

A more strategic question is: Will the relationship transfer along with the wealth?

Many financial institutions are preparing to retain assets. Far fewer are preparing to retain relationships with the individuals inheriting the assets. In the years ahead, the institutions that win the wealth transfer may be the institutions that first win the next generation’s trust.

The Next Generation Is Different

Many financial institutions assume that inherited assets will naturally remain where they are today. If a household has maintained checking accounts, savings accounts, investment relationships, and lending relationships with one institution for decades, it seems reasonable to expect the next generation to continue those relationships.

But younger consumers often have very different financial behaviors, expectations, and preferences from their parents.

Raddon research shows that younger generations are already building wealth differently. Gen Z households report higher ownership rates of investment and retirement-related products than previous generations held at similar life stages. Nearly half of Gen Z households own an IRA, while over half report owning mutual funds. Individual stock ownership is also increasingly common among younger consumers. These are not passive savers waiting to inherit assets. They are actively building financial lives of their own. 

Figure 1: Current deposit product usage by generational segment 

Gen Z and Millennials currently have more retirement-based products than their parents' generations

Source: Deposits and Investments, Raddon Research Insights, 2025

The inheritors of wealth are already making investment decisions and forming financial relationships. Institutions that assume future loyalty will automatically follow inherited assets may be overlooking a critical reality: the next generation is already choosing who they trust.

The children and grandchildren inheriting wealth have different expectations around technology, advice, investing, and financial engagement. The institution that ultimately retains inherited assets may be the institution that earns the next generation’s trust long before the transfer occurs.

This challenge is particularly important for community-based financial institutions. Many have built decades-long relationships with existing members but know less about the financial lives of younger family members. This creates a significant vulnerability. As wealth transfer accelerates, relationship retention may depend on how effectively institutions engage entire households rather than individual account holders.

Wealth Is Moving Earlier and More Intentionally

The traditional image of wealth transfer often focuses on inheritance after death. Increasingly, wealth is moving earlier through strategic gifting, down payment assistance, educational support, and family financial planning.

This creates an opportunity for financial institutions to engage multiple generations before an inheritance event occurs.

If the next generation has not established a meaningful relationship with the institution, inherited wealth may simply walk out the door to another financial institution, investment provider, or advisor.

Raddon research suggests this risk is real. Among consumers who anticipate receiving an inheritance, only half expect to place those funds into traditional deposit accounts. Many intend to make major financial decisions.  

Figure 2: Leaving or receiving a inheritance

Anticipated inheritance signals a need for expanded product support

Source: Deposits and Investments, Raddon Research Insights, 2025

Here are some of the major decisions that consumers expecting an inheritance are considering:

• 50% plan to place funds into savings, money market accounts, or CDs
• 33% plan to invest in the stock market
• 28% plan to save for current/future children/family
• 27% plan to purchase real estate
• 25% plan to pay off debt
• 19% expect to consult a financial advisor

An inheritance is more than a deposit event. It is a decision event. Each decision creates an opportunity for another institution, advisor, or fintech provider to become more relevant than the institution that originally held the assets.

For many inheritors, this may be the first major opportunity to reassess where they bank, invest, borrow, and seek financial guidance. The institution that helps guide the decisions may ultimately determine where the relationship goes next.

The greatest risk associated with wealth transfer is not losing the money. It is losing the person making the decision about the money.

Advice May Determine Whether Assets Stay or Leave

The wealth transfer discussion is often framed as a balance-sheet issue. In reality, it may be an advice issue.

One of the most compelling findings from recent Raddon research is that more than half of consumers would be willing to consult with a financial advisor at their primary financial institution. At the same time, many consumers remain unaware whether their institution even offers investment services. 

Figure 3: Percentage of those who are willing to speak with a financial advisor at their PFI by income segment

Many consumers across all income levels are willing to consult with an advisor at their PFI – are they aware this is an option?

Source: Deposits and Investments, Raddon Research Insights, 2025

Financial institutions do not necessarily need to create demand for advice. The demand already exists. The challenge is establishing visibility, trust, and relevance before wealth changes hands.

The institutions most likely to retain inherited assets may not be those offering the highest rates or the broadest product suite. They may be the institutions that have already developed trusted advisory relationships with multiple generations of a household.

For many consumers, a significant inheritance may be the first time they face decisions involving investing, estate planning, taxes, charitable giving, or long-term wealth preservation. Institutions that are already part of those conversations will be better positioned to retain both the relationship and the assets.

Preparing for the Relationship Transfer

Financial institutions have spent decades refining strategies to attract deposits, grow loans, and deepen product penetration. The wealth transfer may require a different strategy altogether: building relationships across entire households rather than individual account holders.

For many institutions, this starts with greater visibility into multigenerational relationships.

Institutions should consider opportunities to engage younger generations before a transfer occurs. That may include family financial planning discussions, education for first-homebuyers, retirement planning workshops, estate-planning conversations, or investment guidance tailored to younger households.

The goal is to ensure the next generation views the institution as a trusted financial partner before major financial decisions arise.

Organizations that treat wealth transfer planning as a household engagement strategy, rather than solely an investment or estate-planning discussion, may be best positioned to succeed. Institutions can create opportunities for multiple generations to engage with advisors, participate in financial education, and build confidence in the institution’s ability to support future financial decisions.

Economic Uncertainty Makes Relationships More Valuable

Economic uncertainty increases the value of trusted advice. Raddon’s Economic Outlook and Consumer Perceptions research found that about half of consumers believe the United States is currently in a recession, and many continue to navigate inflation pressures, housing affordability challenges, higher borrowing costs, and concerns about long-term retirement readiness. In this environment, advice becomes increasingly valuable.

The next generation does not simply need a place to store inherited wealth. They need guidance on investing, homeownership, retirement planning, debt management, tax considerations, and building long-term financial security. That creates a unique opportunity for financial institutions to position themselves as trusted advisors rather than product providers.

Looking Ahead

The financial services industry will continue focusing on the scale of the coming wealth transfer. And it should. Both the opportunity and the risk are significant.

Here are a few additional strategic questions for leaders:

• How many beneficiaries already have a relationship with our institution?
• Do younger family members know us, or have they interacted with our advisors?
• Are we measuring household relationships or individual accounts?
• What evidence do we have that future inheritors consider us their primary financial institution?
• Are we building relationships before the transfer occurs?
• Is our team equipped to guide these complex financial conversations?

The wealth transfer will move assets from one generation to the next. Whether relationships move with those assets remains an open question. The institutions that answer this question successfully will emerge as winners. They will not simply inherit wealth. They will inherit trust.

Assets can be transferred with paperwork. Relationships must be transferred through relevance and trust.