A once in a lifetime planning opportunity

An estimated £1.2 trillion is expected to pass down from the baby boomer generation to their beneficiaries in the next 5-10 years alone.

Over the next 30 years this number rises to £5.5 trillion.

This creates opportunities for financial advisers to engage with their clients on the subject of estate planning and tax efficiency. Advisers have to ensure that they can maximise any legacies they are leaving and reduce or remove Inheritance Tax wherever possible.

Find out how advisers and paraplanners can understand the challenges in order to maximise the biggest opportunity in financial services by downloading our helpful guide below.

Inheritance Economy guide

Overview of Inter-generational Transfers in the UK

Inheritance Economy: Key Facts

Over a million adults receive an inheritance in a given year (Source: KCT)

Total intergenerational wealth transfers rose from £49bn to £59bn between 2012 and 2014 (Source: KCT)

Household net worth has risen from £2.8tn to £10.2tn between 1995 and 2015 (Source: ONS)

Over 70% of household wealth in the UK is held by the over 50s (Source: KCT)

The over 65s are set to push up the average value of inheritances from £62,000 to £91,000 over the next 10 years (Source: KCT)

Property is expected to account for over 70% of the wealth transferred over the coming years

How prepared is your business for the Inheritance Economy?

Who are the Inheritance Generation?

The Inheritance Generation are the recipients or benefactors of their relatives’ wealth that is expected to cascade down to them over the next 30 years.

The demographic cohorts expected to benefit the most are known as Generation X (born between 1964 – 1980) and Millenials (born between 1981 – 1996).

This unprecedented inheritance boom will transcend from the Baby Boomer generation as they progress through old age. These are the UK citizens who have benefited most from the huge increase in house prices which has led to a higher concentration of wealth within this demographic.

Total intergenerational transfers taking place in the UK

YearEstimated Annual intergenerational transfers
2014£69 billion
2022£95 billion
2034£150 billion
2038£225 billion
2047£355 billion

How we can help

We have a wide range of Inheritance Tax services that invest exclusively in business activities that qualify for Business Relief (BR) to provide full relief from Inheritance Tax after just two years.

Choosing one of our BR qualifying services is one of the most effective ways in taking a proactive approach in the Inheritance Economy, find out more by exploring each service below: