8 High-Net-Worth Planning Tips for New Grandparents

Broad demographic trends unfolding in the United States mean more people in their 60s, 70s and 80s are becoming grandparents, and clients across the wealth spectrum face important planning questions when a new generation arrives.

Intergenerational planning matters for most clients, but those with the most means have the most to consider, according to Rocky Fittizzi, a managing director and wealth strategist at Bank of America Private Bank who recently took on leadership of the firm’s Full Family Engagement and Next Generation Center of Excellence.

The job isn’t going to be easy, Fittizzi says, but it is important for client-families to reach clear agreements and to set appropriate expectations for a new grandchild’s financial care, so everyone can be on the same page moving forward.

“We strive to build relationships whereby clients get all the necessary guidance when a lifecycle or business event occurs,” Fittizzi explains. “We analyze each situation from the perspective of the potential impact it may have on a client’s estate, tax strategy, business succession planning and charitable giving, as well as other goals.”

Asked to reflect on the biggest trends affecting the firm’s clients today, Fittizzi says there are many, ranging from the need to navigate a challenging economic environment to preparing for major potential changes to the estate tax framework as soon as 2026. Also common is a growing sense of urgency to develop and effectuate estate plans that incorporate two, three or more generations of the client’s family.

See the gallery for eight timely tips for helping your wealthy clients who have become a new grandparent. According to Fittizzi, 2023 represents an ideal time for gifting, funding trusts and other estate planning strategies, given current market conditions and tax laws.