Two co-founders have underscored why fostering trust with the next generation is vital to retaining intergenerational wealth.

Losing significant assets through generational attrition is a key danger that advisers face ahead of the incoming $3.5 trillion intergenerational wealth transfer.

Despite being well-aware of the wealth set to be passed down, many advisers lack relationships with the offspring of their current clients, according to the duo.

Speaking on a Netwealth webinar, finance platform Flux co-founders Brett Joffe and Justin Joffe – which was acquired by Netwealth last October – highlighted CoreData research that revealed advisers lose two-thirds of funds under advice (FUA) on average when money moves between generations.