A new survey from asset management firm BlackRock indicates financial advisors serving high-net-worth investors may be overlooking tax planning services their clients seek. The "Advisor Trends Survey," conducted from August 22 to September 7, 2025, included 1,000 advisors across multiple channels.
Advisors reported offering estate planning (67%), customized retirement planning (64%), charitable giving (60%), intergenerational planning (58%), and concentrated stock solutions (57%) most frequently to wealthy clients. Estate planning was described as time-intensive by 62% of advisors, more so than liquidity event planning (43%) or concentrated stock solutions (24%). Additionally, 43% of advisors expressed a desire to improve their estate planning knowledge.
While 92% of advisors said high-net-worth clients often ask about tax planning, only 17% view taxes as the primary driver in portfolio construction. Clients commonly raise concerns about capital gains taxes, estate tax planning, tax-efficient investment management, and income tax liability. However, advisor practices show gaps: 81% use tax loss harvesting, but fewer than 63% incorporate tax-exempt investments, prioritize tax-efficient vehicles in taxable accounts, monitor tax distributions, or employ tax-aware rebalancing. Even fewer engage in tax-efficient asset location or meet holding periods to minimize short-term gains.
"As high-net-worth wealth rises, advisors face a clear mandate—deliver more personalized, tax-managed solutions," said Jaime Magyera, head of BlackRock’s U.S. wealth and retirement businesses, in a statement. "Our research shows advisors are increasingly customizing model portfolios with SMAs and private markets to meet the complex needs of wealthy clients. However, the findings reveal a notable gap in what clients say they need help with and what advisors offer."
Most financial advisors (89%) use model portfolios, with 50% planning to increase assets under management invested in models next year. Eighty-five percent stated models enhance consistency, efficiency, and client experience, while 79% said models free up time for client interaction. Fifty-five percent noted models help deliver value to high-net-worth investors.
Advisors serving high-net-worth clients are more likely to incorporate SMAs into model portfolios (51% vs. 37% who do not serve such clients), private market options (28% vs. 16%), and liquid alternatives (24% vs. 15%). Overall, 56% of advisors had allocations to private markets in 2025, up 7% from 2023, with an estimated 69% likely to have allocations by 2027. Average portfolio allocations remain at 7%, with 66% citing lack of liquidity as a primary concern.
Millennial advisors are more likely than older advisors to provide services for high-net-worth clients with large equity positions, tax-sensitive needs, or enhanced diversification requirements. Sixty-three percent of millennial advisors provide concentrated stock solutions, compared to 55% of Gen X advisors and 53% of baby boomer advisors. Fifty-five percent of millennial advisors provide direct indexing and tax-management overlays, versus 45% of Gen X and 34% of baby boomers. Fifty-two percent of millennial advisors offer access to private market investments, compared to 48% of Gen X and 40% of baby boomers.
Millennial advisors also more frequently offer services centered on risk management (67% vs. 58% Gen X, 50% baby boomers), charitable giving, intergenerational wealth planning (64% vs. 54% Gen X, 61% baby boomers), and liquidity event planning. The survey was fielded by independent research firm Escalent. Ninety-two percent of surveyed advisors work with high-net-worth clients. Respondents included 33% from RIA firms, 27% from national broker/dealers and wirehouses, 22% from independent broker/dealers, 13% from regional broker/dealers, and 4% from bank broker/dealers.