A ‘Once in a Lifetime’ Planning Opportunity

Over the coming decades, the UK will experience the largest-ever transfer of wealth – with members of the ‘Baby Boomer’ generation transferring their estates to their children. An estimated £1.2 trillion is expected to pass down from members of this generation to their beneficiaries in the next 5 to 10 years alone – and between now and 2050, this number will rise to a staggering £5.5 trillion.

In light of this new window of opportunity, financial advisers can anticipate a significant return, as the demand for support surrounding the subject of estate planning and tax efficiency continues to accelerate – encouraging advisers to reach out to clients and discuss how to prepare against the risks of inheritance tax, as well as protect their legacy for future generations.

Key Facts

Over a million adults receive an inheritance in any given year

Total intergenerational wealth transfers rose from £49bn to £59bn between 2012 and 2014

Household net worth rose from £2.8 trillion to £10.2 trillion between 1995 and 2015

Over 70% of household wealth in the UK is held by the over 50s

The over 65s are set to push up the average value of inheritances from £62,000 to £91,000 between now and 2030

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

Who are the Inheritance Generation?

The Inheritance Generation are the recipients or benefactors of their relatives’ wealth, to which the money is expected to cascade down to over the next 30 years. The demographic cohorts expected to benefit most are known as Generation X (born between 1964 and 1980) and the Millennials (born between 1981 and 1996).

This unprecedented inheritance boom will transcend from the Baby Boomer generation as they progress through old age. They 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.

Explore Today’s Demographic Cohorts

Total Inter-Generational Transfers Taking Place in the UK

YearEstimated annual inter-generational transfers
2014£69 billion
2022£95 billion
2034£150 billion
2038£225 billion
2047£355 billion

Now’s Your Chance to Maximise the Biggest Opportunity in Financial Services

Find out how advisers and planners can navigate today’s Inheritance Economy, by clicking the button to download our helpful guide – or alternatively, exploring our useful resources below.

Inheritance Economy Guide

How We Can Help

Stellar Asset Management offers a wide range of Inheritance Tax Services which invest exclusively in business activities that qualify for Business Relief (BR) – to provide full relief from inheritance tax after just two years.

We also collaborate with a host of expert partners, to support advisers in expanding their portfolio of services. Click here to explore our Partner Services.

Recommending one of our BR-qualifying services is one of the most effective ways of taking a proactive approach in the Inheritance Economy.

Read more about our range of Inheritance Tax Services

Stellar AiM IHT Service

A discretionary managed portfolio that mitigates risk through a diversified selection of 40 AiM stocks. This service is available for advised clients, on many of the UK’s largest wrap platforms.

Stellar AiM ISA IHT Service

The Stellar AiM IHT Service is also available for investment via an ISA, which enables investors to benefit from both Business Relief qualification and all ISA tax benefits. This service is also available on various wrap platforms.

Stellar Business IHT Service

A discretionary managed service which provides numerous succession planning and tax efficiency options for business owners – either following the sale of a company, or to invest excess company capital to maintain tax efficiency.

Stellar Growth IHT Service

This discretionary managed service involves the creation of a privately owned limited company for each investor, to access a portfolio of asset-backed Investment Sectors – targeting 5% growth per annum.

Stellar Income IHT Service

An asset-backed discretionary portfolio targeting a 4.5% income per annum, without reducing the capital – distributed bi-annually as a dividend.