Are UK Financial Advisers doing enough to prepare for the Inheritance Economy?
According to research from CoreData Group, US advisers place a greater focus on longer-term relationship building than their British counterparts.
UK advisers lagging behind the US considerably
In a study of over 500 UK and US financial advisers, nearly three-quarters (73%) of American advisers said they were building relationships with their clients’ families. In comparison, only 56% of UK advisers said they were “actively building relationships” with their clients’ heirs.
Furthermore, by their own admission, 58% of UK advisers believe that their services will not be retained by the clients’ beneficiaries once they pass away.
This disparity between UK financial advisers and their clients’ needs to be addressed as the Inheritance Economy is already underway.
According to Kings Court Trust, more than £1 trillion will be passed down the generations over the next decade. The majority of this wealth will be passed on to Baby Boomers (born 1946-1963) and Generation Xers (born 1964-1980). Therefore, advisers should start looking today at ways to engage with their clients about the importance of effective inheritance planning.
The Inheritance Economy – A family affair
An effective first step advisers can take to customer retention is to simple outline the benefits of planning the transfer of a client’s wealth during their lifetime. These steps could provide support for the financial requirements of the next generation or to avoid potential family disputes in the future.
Furthermore, begin facilitating conversations and get the younger generations involved early in the client’s family. This will ensure a more successful and comprehensive estate plan being put in place. These pro-active steps are crucial as inter-generational wealth transfers becomes a family affair – and require a family financial adviser.
How we support advisers
Nevertheless, you may need support or guidance from other professionals, in order to develop a truly holistic service. These may range from tax advisers and legal service to estate administrators and life insurance help. Access to these specialists help advisers to overcome the barriers and maintain a client’s legacy.
We have established a dedicated online resource with an award winning framework to help build these long-term connections. From there you can select from a range of both advisory and complementary services, each with an expert partner organisation that is ready to assist you in the areas of inter-generational and inheritance tax planning.
- Tax Advisory
- Legal Services
- Estate Planning Services
- Later Life Insurance
- Funeral Planning Services
- Technology Partners
- Concierge Services
- Accountancy Services
- More coming soon…