Two in three (63%) financial advisers have encountered family disputes while assisting with inheritance tax (IHT) planning, research from investment manager Downing has found.
The study, which collected responses from 100 advisers and wealth managers, found family disputes are more likely during IHT planning than when estates are settled. Just 26% of those questioned said they had experienced family tension over estates.
Only 11% of the advisers and wealth managers said they had never experienced any family disputes over either IHT planning or estate settlement.
Around a third (30%) said they always ensure other family members are involved when clients initially contact them about IHT planning, and a further 58% said they usually do.
Just 10% said their first meeting is with the client before involving other family members. A meagre 2% said their policy is to exclusively communicate with the client.
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The study also found most advisers regard involving clients’ families in IHT planning as beneficial to their business.
Around 74% of those questioned believe that involving family members in IHT planning is an important part of growing their business, while another 23% agree that while involving family is beneficial to their business, it is not the only reason they do so.
Mark Dunn, head of retail sales at Downing, said: “Inheritance can be emotive for families and that is certainly reflected in the experience of advisers.
“It is striking that advisers see more family disputes during IHT planning rather than over estate settlement, possibly demonstrating the wisdom of involving families from the start.
“It is also generally good for adviser businesses to involve family members in IHT planning as it introduces the adviser to the next generation which could help make them a client in the future.”
See also: Only one in three advisers view in-person new client meetings as essential
