As FTAdviser reported earlier this year:
‘The taxman took more than £5.3bn from people’s estates in 2017, according to analysis from NFU Mutual.
The financial services group said November estimates from the government’s Office of Budget Responsibility (OBR) indicated a further £1.2bn would have been taken in inheritance tax (IHT) by the end of the tax year.’
With this figure continuing to rise, it seems clear that intergenerational planning will become a hot topic for financial advisers and families alike.
As we wrote in our piece – Keeping it in the family – ‘Financial planning needs to be done on an intergenerational rather than individual basis. Instead of considering bequeathing assets to children alone, it is worth considering how grandchildren and great grandchildren can benefit.’
With this in mind, we wanted to share our nine top tips for effective intergenerational financial planning.
Nine top tips for effective intergenerational financial planning
1. Start inheritance planning early to avoid time restrictions
2. Consider the wider family when dealing with individual clients
3. Understand financial planning strategies that can benefit several generations simultaneously
4. Think about including Business Relief as part of IHT planning
5. Use the RNRB to full effect
6. Revisit trusts to assess their efficacy for today’s families
7. Use pensions as an efficient means of protecting the legacy
8. Ensure clients do not pass on too much too soon and lose control or become dependent
9. Review everyone’s circumstances regularly
If you would like to find out more or have any questions about this, please contact us on 020 7391 4747 or firstname.lastname@example.org.