A ‘once in a lifetime’ planning opportunity

An estimated £1.2 trillion is expected to pass down from members of the Baby Boomer generation to their beneficiaries in the next 5 to 10 years alone – and between now and 2050 this number rises to £5.5 trillion. This creates opportunities for advisers to engage with their clients on the subject of estate planning and tax efficiency – to maximise any legacies they are leaving, and to reduce or remove inheritance tax wherever possible.

Find out how advisers and planners can understand how to maximise the biggest opportunity in financial services today, by downloading our helpful guide below.

Inheritance Economy Guide

Key Facts

Over a million adults receive an inheritance in any given year

Total inter-generational 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

The Demographic Cohorts

Who are the Inheritance Generation?

The Inheritance Generation are the recipients or benefactors of their relatives’ wealth, which 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 and 1980) and Millennials (born between 1981 and 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 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
How we can help

Stellar Asset Management offers 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.

 

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