Banks have long grappled with the loss of managed assets when the next generation of a client’s family takes possession of their inheritance. In the quest to reverse this fact, banks have turned to a variety of methods including teaching young millionaires to be how to buy art. The idea is that the skills required to successfully navigate the art world translate well when it comes to managing wealth since the collection of art requires the buyer to examine market conditions based on the profile of the piece. In addition, this training serves to ingratiate the banks with the young clients due to the perceived concern about the financial well being of the heirs while acting as a gateway into the prestigious world of high end art collecting. This is sure to represent only the latest move as financial institutions seek to keep control of the $30+ trillion that will be passed down as the Baby Boomers pass on.
See Margaret Collins, How Citigroup Courts Wealthy Young Heirs: Teach Them to Buy Art, Bloomberg, July 23, 2015.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
