-Insights-
How to Build a Family Service Model
This article serves as a follow-up to our October 2024 discussion on Finding Sustainable Growth With Next-gen Clients, where we explored strategies for financial advisors to engage and retain younger generations. As we emphasized then, the key to long-term success lies in building meaningful, multi-generational relationships. Now, we take that concept further by outlining a Family Service Model (FSM)—a structured approach that ensures advisors stay relevant across generations while strengthening their value proposition in an era of unprecedented wealth transfer.
The Great Wealth Transfer is reshaping the financial landscape, with an estimated $124 trillion set to change hands over the next 25 years.* This massive shift presents a critical opportunity for financial advisors to strengthen client relationships, retain assets across generations, and establish themselves as trusted guides for entire families. Yet, research shows that only 42% of advisors offer intergenerational planning, leaving a significant gap in service that forward-thinking advisors can leverage.**
Creating a Family Service Model (FSM) is essential for advisors looking to future-proof their practice with current clients and their families. Integrating structured segmentation, multigenerational engagement, and tailored service offerings, can help advisors build deeper client relationships and ensure a sustainable legacy for both their clients and their own business. Here’s how to implement a Family Service Model effectively.
Step 1: Segment Your Clients Strategically
A well-structured FSM starts with client segmentation. Advisors should categorize clients based on revenue, assets under management (AUM), and referral potential. Using CRM tools like Redtail or Wealthbox, advisors can assign tiers such as Bronze, Silver, and Gold to prioritize service levels. By implementing segmentation, advisors can personalize interactions, provide scalable customization, and align services with client needs efficiently.
Step 2: Identify and Link Family Members
Intergenerational engagement involves an understanding of family dynamics. To help with this advisors can:
- Identify existing multigenerational relationships (MGRs) within their top-tier client base.
- Use CRM tools to connect family members, even those living separately (not in the same household)
- Assign generational tags (Gen Z, Millennials, Gen X, etc.) for targeted communication and service offerings, and integration to marketing providers such as FMG.
Step 3: Offer Value-Added Services for Families
The next step is to decide what services to offer which will depend on the demographic of the firm’s client base. The highest-growth advisors are significantly more likely to provide*:
- Estate Planning – Ensuring assets transition smoothly while minimizing tax burdens.
- Family Meetings – Facilitating discussions on financial goals, wealth transfer, and philanthropic values.
- Educational Planning – Assisting with college savings plans, investment strategies, and financial literacy for younger generations.
- Charitable & Philanthropic Planning – Structuring donor-advised funds, trusts, and giving strategies aligned with family values.
Step 4: Gather Feedback & Optimize the Model
Before launching an FSM, gathering feedback is crucial. Top-tier clients, centers of influence, advisory boards, and employees can provide insights to refine service offerings. Developing client-facing materials that clearly communicate the benefits of an FSM can also enhance engagement.
Step 5: Execute and Measure Success
Implementation begins by identifying at least 10 clients who would benefit from an FSM and inviting a trusted client to be the first to experience a family meeting. Advisors should:
- Use CRM tracking to monitor the number of clients with multigenerational relationships.
- Set specific growth targets for family engagement by the end of 2025 and beyond.
- Utilize technology and outsourcing to streamline service delivery.
Why Now is the Time to Act
Research from Capital Group*** and Cerulli Associates* highlights that early engagement and education are critical for maintaining relationships with clients’ children. With nearly half of wealth transfers occurring between spouses before reaching younger generations, advisors who proactively engage entire families can position themselves as long-term partners.
Final Thoughts
Financial advising is no longer just about managing assets; it’s about guiding families through life’s financial transitions. The advisors who implement a Family Service Model today can expect to build stronger, lasting relationships that transcend generations. Now is the time to put this model into action and help secure the future—both for your clients and your practice.
Resources
Download the Creating a Family Service Model Checklist
Contact your Beacon Representative to register for a Creating a Family Service Model Workshop
Sources:
* Cerulli Associates (2024) Report: High-Net-Worth and Ultra-High-Net-Worth Markets 2024 – The Great Wealth Transfer: Capturing Money in Motion
** Cerulli Associates (2022) Report: U.S. Advisor Metrics 2022, Trends in Advisor Compensation
*** Capital Group (2022) Report: Pathways to Growth – Capital Group’s 2022 Advisor Benchmark Study
FOR ADVISOR USE ONLY. NOT INTENDED FOR CONSUMER SOLICITATION PURPOSES.
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