Advisers are increasingly likely to consider trusts and onshore bonds as part of financial planning, according to a report from HSBC Life (UK).
Research from the firm conducted in partnership with Technical Connection found 79% of advisers said they are more likely to consider trusts as a direct result of the Budget.
The report, titled The Three I’s of Investable Capital 2025, also revealed 80% of clients are now concerned about intergenerational planning, which is up from 75% in 2022. Some 39% said it is ‘highly important’ compared with 34% in 2022.
HSBC Life (UK) said there should be more conversations with clients around IHT planning, given the rising rate at which it is paid, with a record £8.2bn paid in IHT in the year from April 2024 to March 2025.
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The researchers also found more than two out of three (68%) clients have discussed IHT planning with their adviser. However less than half (47%) of have steps in place to reduce or plan for potential IHT on their estate.
More than two out of five (42%) admit they have not taken action and a further 11% are unsure if they should. Nearly a third of clients (29%) say their adviser has raised IHT planning with them, but they have not taken action.
Almost all (98%) of the advisers questioned for the report said taking an intergenerational approach to planning is important to clients but estimated that 38% of clients who should be planning for IHT are not.
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Mark Lambert, head of onshore bond distribution, HSBC Life (UK), said: “It has never been more important for advisers to actively engage clients and their dependents on intergenerational wealth transfers.
“Record IHT receipts, and demand from clients for support, clearly makes the case for advisers to redouble efforts on estate planning. As part of this, we believe advisers will be seriously considering making the fullest use of the relevant tax effective wrappers available, including onshore bonds.
“Combined with an appropriate trust, onshore bonds can form part of a highly tax efficient estate planning strategy with simplified tax administration.”
