How UHNW families can choose a financial advisor

Key Points:

• Ultra-high net worth households, defined as those with $20 million or more in financial assets, number about 442,000 in the U.S. and collectively hold $22.5 trillion, nearly 25% of U.S. investable wealth as of 2024.
• Financial advisors increasingly seek to serve the ultra-rich due to the prestige and "sticky" nature of their wealth, but working with these clients requires specialized expertise beyond typical portfolio management.
• Ultra-wealthy clients should ask prospective advisors about their experience with similar clients, as their financial situations are often complex and highly individualized, involving business interests, stock options, and intergenerational wealth.
• Key services for ultra-high net worth clients include tax, estate and trust planning, business advisory, philanthropic services, and family governance, with advisors often acting as mediators in sensitive family wealth transfer matters.
• Prospective clients should also inquire about advisors’ approaches to tax and estate planning implementation and succession plans, ensuring they work with a professional team capable of managing wealth across generations seamlessly.