The relationship that worked for them may not be the relationship you need. Here’s how to decide.
When a parent passes and you inherit a meaningful sum, the financial advisor relationship often comes with the assets. Continuing to work with the advisor your parents trusted can feel like an unspoken obligation, shaped by respect, continuity, and the emotional weight of the moment.
The question of whether to continue working with your parents’ advisor deserves serious consideration. The financial situation, goals, and needs that shaped your parents’ relationship with their advisor may not be the same as yours. That makes the relationship worth evaluating on its own terms.
The Question You’re Really Asking
On the surface, the question is simple: “Should I keep my parents’ advisor?”
But underneath it is a more important question: “Is the relationship that worked for my parents the right one for me, my life stage, my goals, my fee tolerance, my tax situation, and my next 30 years?”
…And that’s the question that matters.
Five Questions To Set You Up for Success
1. Was this a fiduciary relationship?
Was your parents’ advisor a registered investment advisor (RIA) operating under a fiduciary standard? Or were they a broker, an insurance agent, or a wirehouse representative operating under a suitability standard?
A fiduciary advisor is legally obligated to act in your best interest. A broker is not — they are only responsible to recommend products that are suitable for you.
During your next meeting, ask for a copy of Form ADV Part 2, often called the firm’s brochure. It outlines their services, fees, potential conflicts of interest, and disciplinary history.
Ask: “Are you a fiduciary at all times when acting on my behalf?” The answer can help clarify the advisor’s role and the responsibilities they have when providing advice to you.
2. How Is the Advisor Compensated?
Understanding how an advisor is paid can help you determine whether the arrangement is appropriate for your financial situation.
- Fee-only — The client pays the advisor directly, typically through a percentage of assets under management or a flat fee. No commissions are paid for the sale of financial products.
- Fee-based — This is a hybrid model. The firm charges fees and may also receive commissions on certain products it recommends. Any potential conflicts of interest should be disclosed.
- Commission-based —Compensation comes from product providers, including insurance companies, fund families, etc. when certain products are purchased.
3. Does the Advisor Have Experience With the Situation You’re Actually In?
Your parents may have hired their advisor during a very different stage of their financial lives. You may now be inheriting those assets while facing a completely different career trajectory, financial situation, and set of goals.
The advisor who helped your parents manage their wealth may have been a great fit for their accumulation and retirement years. But your financial needs may now involve tax-loss harvesting, concentrated stock diversification, equity compensation planning, or business-owner strategies.
Ask: “Do you have experience working with clients with financial needs similar to mine?”
4. Is the fee structure appropriate for the new asset level?
Many advisors charge a percentage of assets under management. As the value of the portfolio increases, the annual fee can increase substantially, even if the level of service stays the same.
An inheritance may change the amount of assets an advisor manages for you, making it a good time to revisit the arrangement and the services you receive in return.
Depending on your needs, those services could include tax planning, estate planning coordination, or multi-generational planning. Take time to understand what you are paying for and whether the cost aligns with the services and value provided.
5. Do you actually want to work with this person?
Beyond the technical questions, there is the personal one. Will you actually call this advisor for the hard conversations? Are they the person you want to go to during the job changes, a divorce, a new business idea, a second home purchase?
Inherited advisor relationships often need to be reevaluated on their own terms. Ultimately, it comes down to a simple question: Do you want to continue the relationship with this advisor?
Take Time to Assess Your Options
- Schedule a review meeting with your parents’ advisor and discuss their philosophy, fee structure, service model, and how they would advise YOU specifically.
- Interview at least one other firm for comparison. A fee-only fiduciary may offer an initial meeting at no cost. Ask the same questions in both meetings so you can compare their responses and approaches.
- Consider having another financial professional review the portfolio. This could be a fee-only financial planner, investment advisor, or other professional who is not involved in managing the assets. Ask: Are the current holdings appropriate for me, given the step-up in basis? Are the fees reasonable? Are there alternatives I should consider?
- Don’t feel rushed. The assets aren’t going anywhere. Give yourself time to understand your options and decide whether continuing the relationship is right for you. A 60- or 90-day evaluation period may be reasonable, depending on your circumstances.
The Decision Is Yours
There is no right answer for everyone. Some people will decide that their parents’ advisor remains the right fit. While others may decide that their financial needs call for a different relationship.
The important thing is to make the decision intentionally. Here are a few key takeaways to consider:
Staying May Make Sense When:
- Their specialization aligns with your situation.
- Their fee is reasonable for your asset level.
- You have genuine rapport with them as your advisor, not simply as your parents’ advisor.
- The portfolio is well-constructed and tax-efficient for your situation.
It May Be Time to Consider a Change When:
- The level of service has not scaled with your inherited assets.
- The portfolio is invested in high-fee, opaque, or proprietary products.
- You would not choose this advisor if you were starting from scratch today.
- There is a major mismatch between your life stage and the advisor’s expertise, such as an advisor who primarily works with retirees when you are still in your career.
If you’ve recently inherited a significant sum and you’re working through this decision, WLTH Management offers a no-pressure portfolio review for inheritors. We’ll evaluate the current portfolio, fees, and structure, and discuss options — whether you choose to work with us or not.
This document is for educational purposes only and does not constitute tax, legal, or investment advice. WLTH Capital Management, LLC is a registered investment advisor. Strategies discussed may not be appropriate for all investors. Please consult your tax advisor and financial advisor on application to your specific situation.