Private Wealth and Estate Planning: Industry Report

Summary

Private wealth and estate planning sits within a large, concentrated asset and wealth management market. Global assets under management reached 147 US$ trillion ¹, and asset and wealth managers entered the period with record managed assets of 159 US$ trillion ². Growth has depended heavily on market appreciation: more than 80 percent of gross revenue growth came from appreciation rather than net flows ¹. Client assets are concentrating in large firms. In the United Kingdom, the ten largest firms by client numbers serve 89 percent of discretionary retail clients ³. Wealth transfer projections of up to 124 US$ trillion in the United States ⁷ point to rising estate planning demand, although these are forecasts from secondary sources. The main risks are fee compression, low retention of assets across generations ⁸ and changing US exemption rules ⁹. The source pack contains no comparable estate-planning fee, margin, default or fraud data.

Key findings

1. 1

   Growth is driven by markets more than by new client money

   More than 80 percent of gross revenue growth came from market appreciation rather than net flows, and retail investors drove a majority (61 percent) of asset growth. Estate planning revenue therefore depends on market levels as well as on client acquisition.

   Confidence: High
2. 2

   Fees are forecast to compress while assets grow faster than revenue

   Industry revenues are forecast to grow about 7 percent a year against roughly 9 percent AUM growth, and average fees are forecast to fall from 35 to 32 basis points. These are forecasts, not observed outcomes.

   Confidence: Medium
3. 3

   Client relationships are concentrating in a few large firms

   In the United Kingdom, the ten largest firms by client numbers serve 89 percent of discretionary retail clients, up 19 percent since the earlier survey. This is a regulator observation for one market.

   Confidence: High
4. 4

   Large intergenerational transfers carry retention risk

   Projections of wealth transfer range from 84 to 124 US$ trillion in the United States, and advisors estimate they retain assets only about half the time in intergenerational transfers. The transfer projections are forecasts, and the retention figure is an advisor estimate from a survey.

   Confidence: Medium
5. 5

   US estate exemption rules are set in enacted law, while fiduciary rules are still proposed

   The estate, gift and GST exemption is permanently set at 15 million US dollars per individual, with 30 million for a married couple. A Department of Labor rule on fiduciary duty for designated investment alternatives is proposed, and its final status is not verified.

   Confidence: High

11. Industry definition and scope

This report covers private wealth management and estate planning. The scope includes advice and investment management for high net worth households, and planning for the transfer of assets across generations through wills, trusts, gifts and tax-efficient structures. Most sources in the pack measure the wider asset and wealth management industry, so industry-level figures are used as context and labeled as such ¹².

The geographic scope is global. The pack contains verified detail only for the United States on estate, gift and GST tax and on ERISA fiduciary rules, so those points are treated as US-specific ⁹¹⁰. United Kingdom supervisory data is used to describe market structure ³.

Terminology is not consistent across sources. Assets under management, total client assets, fee-based client assets, managed assets and client wealth are used with different meanings. Companies report on different bases, so figures are compared with caution. Each figure uses the latest available data in its source, including interim results where that is what the source provides.

Segments covered are wealth managers, private banks, custody and advisory platforms, and estate planning specialists. Estate planning is a service layer that sits on top of investment management and banking relationships, so it is rarely reported as a separate line.

Definitions are taken from each source. No common definition was available across the pack.

22. Market size, structure and value chain

Global assets under management reached 147 US$ trillion, and aggregate profit margins stayed above 30 percent ¹. The margin figure covers asset management broadly and is not specific to estate planning. Asset and wealth managers entered the period with record managed assets of 159 US$ trillion ².

Oliver Wyman with Morgan Stanley forecasts industry revenues to grow about 7 percent a year, against roughly 9 percent AUM growth, and average fees to fall from 35 to 32 basis points ². This is a forecast. If it holds, firms will need scale, lower unit costs or new fee sources to keep margins. This is the writer's interpretation of the forecast.

The value chain runs from client acquisition and advice, through portfolio construction, custody and administration, to planning and estate documentation. Distribution runs through independent advisors, bank relationship managers, custody platforms and direct channels. Revenue comes mainly from asset-based fees, fee-based flows and, in private banking, lending and deposit margins.

Morgan Stanley wealth management net revenues rose to 8.52 billion US dollars in the first quarter from 7.327 billion a year earlier ⁵. The writer calculates growth of about 16 percent from these two figures. Single-quarter growth is not a reliable trend signal.

• Global assets under management 147US$ trillion Observed Global, Latest available data [1]
• Forecast average fee end-point 32basis points Forecast Global, Forecast end-point [2]

No estimate of the estate planning share of wealth revenue was available in the pack.

33. Customers, demand and adoption

Retail investors drove a majority share, 61 percent, of asset growth between the two most recent reported periods ¹. Retail clients are a large and growing base. The UK financial regulator reports that firms in its wealth management portfolio support more than 5.5 million retail clients and manage almost 1 trillion pounds of assets ³.

Wealth transfer is the main demand driver for estate planning. Cerulli projections cited by a secondary source put the transfer at up to 124 US$ trillion in the United States, with an earlier projection of about 84 US$ trillion ⁷. Natixis estimates more than 84 US$ trillion will change hands globally over the next two decades ⁸. These are forecasts. The original Cerulli report was not retrieved directly.

Advisors estimate they retain assets only about half the time in intergenerational transfers ⁸. This is an advisor estimate from a survey, so it reflects advisor views rather than audited results. It points to a need for planning that keeps heirs engaged.

Client demand for alternatives is also rising. Executive Order 14330 defines alternative assets to include private market investments, real estate, digital asset holdings and lifetime income strategies ¹⁰. Externally managed custom-model assets in US wealth channels reached about 300 US$ billion at the end of the first quarter ². Private banking inflows also show demand. Deutsche Bank private banking annualized net inflows were 7 percent of total AuM in the second quarter ⁶.

Data is not available in the pack on digital advice or AI adoption in estate planning.

• Retail clients in the UK wealth portfolio 5.5million clients Observed United Kingdom, Latest available survey [3]

Demand indicators are drawn from different geographies and are not additive.

44. Competitive landscape and key players

The pack includes company-reported figures from large providers. Charles Schwab reported total client assets of 13.33 US$ trillion ⁴. Morgan Stanley Wealth Management reported 3.16 US$ trillion of fee-based client assets ⁴. Société Générale private banking reported record AuM of 138 euro billion, up 6 percent year on year ⁵. Deutsche Bank private banking reported total AuM of 732 euro billion, up 13 percent year on year ⁶.

These measures are not comparable. Schwab's total client assets are a broad measure, while Morgan Stanley's fee-based figure covers only the fee-based subset. The bank figures are AuM and sit within banking groups that also lend. No market share is calculated because a common definition and total market denominator are not available.

Business models differ. Custody and self-directed platforms compete on scale and price. Integrated wealth managers combine advice, planning and fee-based products. Private banks combine investment management, lending and planning for wealthy families. This comparison is based on reported measures and is not a ranking.

Concentration is most clearly documented in the UK. The ten largest firms serve 89 percent of discretionary retail clients ³. Competitive pressure comes from fee compression ² and from custom and externally managed models that can be distributed through wealth channels ².

• UK discretionary retail clients served by ten largest firms 89percent Observed United Kingdom, Latest available survey [3]

Market share and margin comparisons between these providers were not available in the pack.

55. Technology, operations and workforce

The pack contains little verified evidence on technology in estate planning. The most direct signal is the growth of custom and externally managed models in wealth channels, which reached about 300 US$ billion ². This indicates a shift toward model-based portfolio delivery, which can reduce the cost of individual advice for some clients.

Operating practice is shaped by distribution. The BCG report finds that distribution control has become decisive in asset growth as retail investors drive most of it ¹. Firms that control client access and servicing platforms therefore have a structural advantage over firms that depend on third parties.

If fees fall as forecast ², operating scale and productivity become more important. The writer's interpretation is that firms will need to automate planning documentation, reporting and onboarding to protect margins. The pack does not verify this adoption or its effect on cost.

No verified data was found on the cost-to-income ratio, productivity or talent supply for private wealth and estate planning. Skills needs, including tax, trust and fiduciary expertise, are noted as a practical requirement, but the pack does not quantify them.

Workforce and automation claims were not verified in the pack and are treated as gaps.

66. Regulation, standards, risk and sustainability

United States estate tax is set in enacted law. The One Big Beautiful Bill Act permanently set the estate, gift and GST exemption at 15 million US dollars per individual, and the exemption for married couples is 30 million US dollars total, adjusted for inflation from a later date ⁹. These are binding requirements under the tax code as described by the source.

A Department of Labor proposed rule would clarify and provide a safe harbor for the duty of prudence when ERISA fiduciaries select designated investment alternatives ¹⁰. This is a proposal, not a binding rule. The pack does not confirm its final status after the comment period, so readers should check the Federal Register directly.

Executive Order 14330 sets policy direction by defining alternative assets, including private market investments and digital assets ¹⁰. An executive order is not itself a rule on how advisors must operate, so its practical effect depends on later agency action.

In the United Kingdom, the financial regulator publishes wealth management survey data ³. The pack does not include UK rules on suitability or estate planning. Verified data on fraud, default or loss rates, privacy and sustainability was not found. Retention of transferred assets ⁸ is a commercial risk that the pack measures only through advisor estimates. This section does not provide legal or tax advice, and users should confirm rules with qualified professionals in the relevant jurisdiction.

• US estate, gift and GST exemption per individual 15US$ million Observed United States, Current enacted level [9]

Binding rules, proposals and voluntary guidance are separated in the text.

77. Challenges, opportunities and case examples

The main constraint is fee compression. Average fees are forecast to fall from 35 to 32 basis points ². Dependence on market appreciation is another constraint, because more than 80 percent of revenue growth came from market gains rather than net flows ¹. A market fall would reduce fee income and AuM together.

Asset retention across generations is a major commercial challenge. Advisors estimate they keep assets only about half the time ⁸. Firms that plan transfers early and engage heirs may gain share, but the pack does not quantify that effect.

Opportunities include the large wealth transfer forecast ⁷, growth in alternative and custom-model assets ¹⁰², and continued private banking inflows, such as 7 percent annualized net inflows at one bank ⁶. These are opportunities based on forecasts and single-company results.

Case examples are limited. Charles Schwab, Morgan Stanley Wealth Management, Deutsche Bank private banking and Societe Generale private banking provide company-reported examples ⁴⁵⁶. The pack does not contain comparable estate planning outcome data for these firms, so the examples show scale and recent growth rather than estate planning results.

Comparable case data was limited, as noted in the methodology callout.

88. Outlook and strategic implications

In the base case, AUM grows faster than industry revenue and fees compress, as forecast ². Estate planning demand rises with wealth transfer ⁷⁸. Scale players with distribution control ¹ are better placed to absorb fee pressure than small firms, although this is the writer's interpretation.

The main uncertainty is market volatility. Because growth depends heavily on appreciation ¹, a sustained market fall would weaken both revenue and client asset levels. A second uncertainty is US policy. The exemption is set in law ⁹, but the fiduciary rule and the executive order on alternative assets could change product and advice practices ¹⁰.

Implications differ by stakeholder. Advisors and planners should plan for lower fees, document retention strategies and check how alternative assets fit client objectives. Banks and platforms should track scale and distribution control. Families should check estate exemption thresholds and retention plans with qualified advisers. Regulators should watch concentration and fiduciary standards. Forecasts are secondary-source estimates and should be tested against later data.

The pack contains no quantitative scenario model for estate planning.

99. Conclusion

Private wealth and estate planning operates in a large, concentrated and fee-pressured market. Growth in assets is strong, but it depends on markets, and fee compression is forecast. Wealth transfer and alternative assets are the main demand drivers. US exemption rules are set in law, while fiduciary changes remain proposed. The most defensible takeaway is that scale, retention capability and governance will matter most, but the pack lacks estate planning-specific margin, fraud and default data.

How this was built

Sources

1. 1

   Global Asset Management Report: An Imperative for Growth (Chapter 1)

   Boston Consulting Group Market research

2. 2

   Asset and wealth management outlook: Trends shaping growth

   Oliver Wyman with Morgan Stanley Market research

3. 3

   Wealth management survey report

   Financial Conduct Authority (UK) Regulator

4. 4

   Largest Wealth Management Firms by AUM

   Investing in the Web (blog compilation) News report

5. 5

   Summary Of Q1 Financial Results In Wealth Management, Private Banking

   Family Wealth Report (Wealth Briefing) News report

6. 6

   Summary Of Q2, First-Half Financial Results In Wealth Management, Private Banking

   Family Wealth Report News report

7. 7

   Cerulli wealth transfer projection as summarized in Great Wealth Transfer article

   Global Hope Coalition Foundation (article citing Cerulli Associates) News report

8. 8

   Wealth Transfer Report and The Great Wealth Transfer: An existential test for advice

   Natixis Investment Managers Company report

9. 9

   Recent developments in estate planning

   The Tax Adviser (AICPA) News report

10. 10

    Fiduciary Duties in Selecting Designated Investment Alternatives (proposed rule)

    US Department of Labor, published in Federal Register Regulator