Free checklist
The Successor's Checklist
Two pages for a next-generation advisor: the successor's side of the Edward Jones, Merrill, UBS and Northwestern Mutual programs, and what to settle in writing before you inherit a book, buy in, or move.
What's inside
A G2 or junior partner reaches the signature line in one of three ways: as the successor in a firm's sunset program, as a buyer of equity in a practice, or on a team they might leave. In each, the leverage sits before the signature. This checklist sets out the successor's side of four firm programs and what to settle in writing first.
- The successor's side of Edward Jones RTP, Merrill CTP, UBS ALFA and Northwestern Mutual
- Before you sign an inheritor agreement: eight questions
- Before you buy in: the twelve terms to get in writing
- Before you move: credited production, rep codes and the non-solicit
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Where a G2 or next-generation advisor signs: a sunset program, a buy-in or a move
A next-generation advisor usually reaches the signature line in one of three ways: as the successor in a sunset program at a wirehouse, regional or other firm that runs one, as a buyer of equity in an RIA or independent broker-dealer practice, or on a team they might leave. Each runs on documents that are hard to change once signed, so the checklist sets out what to settle in writing in each case. It is general information; take legal questions to your own counsel and tax questions to your own tax adviser.
The successor's side of Edward Jones, Merrill, UBS and Northwestern Mutual
Edward Jones' Form 10-K for 2025 states that successor financial advisors receive reduced compensation for up to five years under its Retirement Transition Plan. Under the Client Transition Program terms Merrill announced in 2019, inheriting advisors were subject to a 50% payout until the firm recovered 80% of the award, and AdvisorHub reported that from January 1, 2025, inheritors receive full production credit once the firm has earned back 70%. UBS's own description of ALFA says the successor funds the first 100 percent of ALFA Core. Northwestern Mutual's brochure says eligible representatives and teams receive loans from its broker-dealer to support the succession of a practice. The terms differ by firm and change over time, so the version in front of you is the one that governs.
Common questions
What is in the Successor's Checklist?+
Two pages for a next-generation advisor: where you stand, the successor's side of the Edward Jones, Merrill, UBS and Northwestern Mutual programs, and three checklists, for before you sign an inheritor agreement, before you buy into a practice, and before you move.What does a successor sign in a sunset program?+
The successor usually signs an inheritor or receiving agreement alongside the retiring advisor's sunset agreement. It sets how the successor pays for the inherited relationships, for how long, how the accounts will be coded, and what restrictions apply to those clients if the successor later leaves. The terms differ by firm and change over time, so read the version in front of you with counsel before signing.How long do Edward Jones successors receive reduced compensation under the Retirement Transition Plan (RTP)?+
Up to five years. Edward Jones' Form 10-K for 2025 states that successor financial advisors receive reduced compensation for up to five years, and its filings through 2022 said up to four. The filing does not publish the reduction itself, so the successor's agreement is the place to find the actual rate and schedule.How do Merrill CTP inheritors pay for the book?+
Under the terms Merrill announced in 2019 for its Client Transition Program (CTP), inheriting advisors were subject to a 50% payout until the firm recovered 80% of the award, for up to eight years. AdvisorHub reported that from January 1, 2025, inheritors receive full production credit once the firm has earned back 70%, down from 80%, and that the program includes non-solicitation provisions on inherited accounts.Who pays for UBS ALFA, the successor or the firm?+
Both. Under UBS's Aspiring Legacy Financial Advisor (ALFA) program, UBS's own description says the successor financial advisor funds the first 100 percent of ALFA Core, and the firm funds the amount above that and the ALFA Plus rate. Successors also sign an ALFA receiving agreement that carries a non-solicitation restriction on the inherited clients.How does a Northwestern Mutual advisor finance buying a practice?+
Northwestern Mutual's investment adviser brochure says eligible financial representatives and teams receive loans from its broker-dealer, NMIS, to support the succession of a representative's business to another Northwestern Mutual representative or team. In January 2026 the company's chief field officer described a $1 billion succession capital program offering debt financing for large, complex ownership transfers, including buy-ins and succession sales. Part of the purchase price is contingent on the buyer successfully transitioning the relationships, and part moves with the assets that remain for a year or several years after closing.Can a successor take inherited clients if they leave later?+
Clients can always choose. FINRA's Regulatory Notice 22-23 says customers may choose not to work with the new representative and may move some or all of their assets to another representative or firm. What a successor may do to contact them is a separate question, governed by the non-solicitation terms in the inheritor agreement, so have counsel read that agreement before any move.What should a G2 get in writing before buying into a practice?+
A timeline for the first equity, the valuation method and who applies it, any discount for the successor, the financing source, the tranche or vesting schedule, buy-sell triggers, any right of first refusal or first offer, what happens if the founder sells to an outside buyer, the client transition plan, non-solicit terms that reflect who brought in each client, title and decision rights, and what happens if the founder does not retire. Read every draft with counsel.
Read next
- Merrill's Client Transition Program, a closer look
The program from the retiring advisor's side.
- UBS ALFA: long-term considerations
What ALFA asks of both advisors and their clients.
- Edward Jones' Retirement Transition Plan
What the RTP pays and what it costs.
- What happens to a Northwestern Mutual practice when the advisor retires
Succession lending and the purchase price.
- The Protocol for Broker Recruiting, explained
What a departing advisor may take and who may be contacted.
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