At Wells Fargo Advisors, a mother-daughter advisory duo overseeing roughly $3 billion in client assets has developed a deliberate strategy for managing multigenerational wealth. Kathleen Malone, a Barron's Hall of Fame Advisor, and her daughter Emily Malone work alongside senior advisor Andy Sontag to serve families where the first-generation wealth creators and their adult children often have different financial needs and communication styles.
Rather than a formal split of duties, the team's roles evolved organically. Kathleen focuses primarily on the founders and parents who built the wealth, while Emily engages directly with the heirs who will eventually inherit it. This division addresses a persistent industry challenge: maintaining client relationships as assets pass from one generation to the next.
Kathleen said reducing key-person risk was a major motivation. After 25 years of building close relationships, many families had become heavily dependent on her personally. "That's flattering, but it is not good for clients," she said. "If something happened to me, or when I eventually step back, they need to know there is real continuity."
To establish Emily's credibility as an independent advisor, Kathleen deliberately put her in front of clients early and refrained from stepping in when clients defaulted to her on matters Emily could handle. The team avoids using the word "transition" with clients, instead framing the addition of Emily as "expanding the relationship" to include the next generation. For entrepreneurs and first-generation wealth creators, this distinction is critical. "The last thing they want to hear is 'someone else will take it from here,'" Kathleen said.
Emily treats adult children as clients in their own right, not merely as "heirs-in-waiting." She meets with them independently, without parents present, to discuss sensitive topics such as debt, prenuptial agreements, career changes, and financial planning. "That space is sacred, and I protect it," she said. She also makes clear that confidential conversations remain confidential, emphasizing that she is not a go-between for their parents.
Many next-generation clients fear they lack sufficient financial knowledge, Emily noted. To ease that anxiety, she often starts with a phrase like, "You may already know this, but…" and then explains concepts from the ground up. This approach helps build trust and confidence among heirs who are eager to be responsible stewards but worry about making mistakes.
For advisors considering bringing relatives into the business, Kathleen advises hiring only someone they would hire on merit alone. "Clients need to see them as an advisor from day one, not as your assistant or your kid," she said. Differences in style should be embraced, she added: "Emily approaches things differently than I do, and that's a strength, not a problem."
The team's model offers a blueprint for advisory firms seeking to retain assets across generations. As the industry grapples with the challenge of building durable practices, the Malones' approach demonstrates how deliberate role differentiation and independent relationship-building can strengthen family wealth ties.
