The Great Opportunity Transfer: Implications for Wealth Management and Bank Trusts

The financial landscape is on the brink of a seismic shift as trillions of dollars in wealth are set to transfer from the Baby Boomer generation to their heirs. This phenomenon, known as the Great Wealth Transfer or Great Opportunity Transfer, according to Michael Kim, AssetMark CEO, presents a once-in-a-lifetime opportunity for financial institutions, particularly bank trust departments, to reinforce their value proposition and build relationships with the next generation of wealth holders.

The Scope of the Great Opportunity Transfer

Cerulli predicts that $105 trillion will be transferred to Gen X and younger generations by 2048, and that $47 trillion of that will be controlled by women. During that same timeframe, Cerulli also states millennials will inherit $46 trillion, and Gen Z will inherit $15 trillion.

As Baby Boomers pass on their assets, their heirs—primarily Millennials and Gen X—will inherit significant wealth, reshaping the financial services industry. Unlike previous generations, these younger wealth holders will have distinct expectations and priorities when managing their finances, emphasizing digital access, advanced planning, tax optimization, and socially responsible investing.

The Role of Bank Trusts and Wealth Management in Wealth Succession

Bank trust departments have long played a crucial role in estate planning, fiduciary services, and wealth preservation. As the Great Wealth Transfer accelerates, the industry must evolve to address the shifting expectations of the next generation of clients. A unified solution that integrates bank trust and wealth management services will be essential in ensuring a seamless transition of assets while maintaining client loyalty. Key areas of focus include:

• Intergenerational Relationship Management: Studies show that nearly 70% of heirs fire their parents’ financial advisor after inheriting wealth. An integrated approach to bank trust and wealth management allows institutions to build a more comprehensive relationship with families, ensuring continuity and trust across generations.
• Technology and Digital Integration: Millennials and Gen X investors expect seamless, tech-enabled financial experiences. Banks must invest in digital solutions, online account management, and AI-driven insights to remain competitive while offering a holistic wealth management experience.
• Values-Based Wealth Management: The rising generation prioritizes personalized investing and philanthropy. A unified approach allows institutions to provide integrated strategies for impact investing, estate planning, and charitable giving that align with client values.
• Succession Planning and Education: Heirs often lack the financial literacy to manage their newfound wealth effectively. By combining trust and wealth management services, institutions can provide a more structured and educational approach to inheritance, ensuring long-term financial success for heirs.

To respond to these needs, AssetMark and Cheetah collaborated to create a unified solution that offers comprehensive wealth management capabilities and trust accounting services.

“We need to start thinking strategically about how to help these advisors become the next leaders of the industry,” says Michael Kim.

Seizing the Opportunity

For bank trust professionals, the Great Opportunity Transfer presents both a challenge and a chance for growth. Those who proactively engage the next generation, embrace digital transformation and align their services with evolving client expectations will be well-positioned to thrive in this new era of wealth management.

Now is the time for bank trust professionals to reimagine their approach, forge deeper relationships with heirs, and create a seamless, modernized trust experience. By providing a unified solution that integrates trust and wealth management, institutions can ensure that assets, trust, and loyalty are transferred from one generation to the next.

AssetMark and Cheetah are separate and unaffiliated companies

For financial professional use only.

7754042.1. | 03/2025 | EXP 03/01/2027