Why High-Net-Worth Individuals Need Specialized Wealth Advisors

The use of acronyms including (HNW) high-net-worth, (VHNW) very-high-net-worth, and (UHNW) ultra-high-net-worth are increasingly more common, not only in wealth advisor-related news articles, advertisements, and marketing materials but around the workplace as well. These terms signify more than just a household’s financial assets; they reflect the greater depth, breadth, and sophistication of wealth advisory needs that arise as individual and family wealth grows.

What qualifies someone as having a high, very high, or ultra-high net worth?

Unlike an income tax approach, an individual’s net worth comprises financial assets including real estate, securities, and retirement, minus debts and liabilities. Financial service providers regard a HNW client as someone with at least $1 million in liquid – or investable – financial assets. Clients with assets between $5 and $30 million are considered VHNW, while UHNW clients have assets greater than $30 million.

Why do these individuals need specialized wealth advisors?

As household assets climb, a qualified wealth advisor can provide essential services and expertise in four vital areas:

1. Estate planning is in a critical planning stage now with the Estate Tax Sunset looming large with the drop in the Unified Credit from the $14 million level per person to approximately $7 million as of December 31, 2025. With so many clients owning multiple accounts, unlike a simple IRA beneficiary designation, passing non-qualified assets in a HNW, VHNW, or UHNW portfolio – such as antiques, jewelry, or art – often involves trusts, charitable and corporate entities. Other investment accounts and real estate holdings also necessitate advanced wealth management and planning expertise to help ensure a smooth transfer of wealth and minimize estate tax burdens that can lessen inheritances by 40 percent.
2. Tax strategy and planning grow increasingly complex as asset levels rise, especially beyond the $5 million threshold. Managing non-qualified investments requires a wealth advisor with not only preparation experience, but detailed tax planning as well. Qualified advisors can recommend strategies to not only help reduce clients’ year-end tax liability, but also mitigate penalties while offering complex options and strategies to help ensure compliance with ever changing tax laws.
3. Risk management and insurance planning are critical for protecting substantial assets. Beyond basic policies like automotive, home, health and life insurance, even moderate net-worth portfolios often require additional planning. This often includes entity planning through Limited Liability Companies, partnerships or corporations to hold rental real estate and business operations, as well as higher levels of personal umbrella liability coverage to protect against possible lawsuits. A specialized wealth advisor can help ensure comprehensive risk management to best safeguard your wealth.
4. Trust and Estate administration handling has become an increasing necessity especially with so many needing multiple trusts to cover many generations of family members. Having a Corporate Trustee is an important consideration in choosing a fiduciary to help with your family’s needs.

The importance of professionally prepared tax returns and estate planning documents

High-net-worth individuals benefit significantly from professionally prepared tax returns and estate planning documents. Expertise preparation helps ensure compliance with complex tax regulations while legally limiting tax liabilities. Proper estate planning helps facilitate the smooth transfer of wealth, reduces the risk of disputes, and ensures your wishes are honored.

When should you consider hiring an advisor?

Regardless of your financial status, the financial stakes at these asset levels can quickly surpass what most people feel equipped to manage on their own. Consider the following:

• Time management. How would you prefer to spend your free time?
• Collaborative team vs. separate advisors. Are your separate advisors talking together to ensure their strategies all fit and work together towards your goals?
• Expertise. Are you – or do you aspire to be – well-versed in the ever-evolving securities markets, tax laws, estate planning, and other related finance and insurance areas?
• Objectivity. Can you maintain an objective view of your wealth situation and stay true to your short, mid- and long-term financial plans through market volatility and economic uncertainty in light of the ever-evolving estate, gift, and income tax changes?
• Costs. Are you able to ask questions of your team of advisors without a bill being the result of each telephone call, meeting, or email?

Unless you can confidently answer “yes” to each of these questions, hiring a specialized wealth advisor can help you achieve your goals and strengthen your legacy through a holistic, personalized team approach.

For nearly 40 years, Mercer Advisors has integrated expertise in financial planning, investment management, tax, estate, insurance, and more, all managed by a single team of dedicated strategists working together to offer you options and choices. Ready to learn more about our services for individuals and families with sophisticated wealth and investment management needs? Connect with our team today for a no obligation meeting to see how Mercer Advisors can help you.

Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.

All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.

Mercer Advisors is not a law firm and does not provide legal advice to clients. All estate planning document preparation and other legal advice is provided through select third parties unaffiliated to Mercer Advisors. Tax preparation and tax filing are a separate fee from our investment management and planning services.