Two thirds of advisers (67%) believe their clients leave it too late to seek inheritance tax (IHT) and estate planning advice, according to research from Downing.
This is despite the researchers finding 84% of advisers and wealth managers think the average age at which clients first contact them about IHT and estate planning has fallen over the past year.
More than a quarter (27%) of the advisers spoken to said the average age has ‘dropped considerably’.
While clients are clearly getting younger as demand for support surges owing to the frozen thresholds, a majority of advisers believe people are still not engaging with the issue in a timely manner.
Advisers said on average, they begin engaging clients on estate planning when the client is 46 years of age. However, 39% of advisers said they begin engagement when the client is past 50.
There also appears to be a persistence knowledge gap, with 39% of advisers saying clients are unaware of the inclusion of DC pensions in estates from next April.
A further 35% said clients have ‘limited awareness’ of how trusts can be used as part of estate planning strategies, while 31% said they have clients without wills.
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Rebecca Ward-Howes, head of product at Downing, said: “The biggest risk in estate planning is often delay.
“That risk is only growing: business relief reforms are already changing the picture, and from April 2027, unused pensions will be pulled into the IHT net for the first time, catching out many families who assumed their pension was safe from IHT,” she added.
“It’s encouraging that clients are engaging with advisers earlier than before but our research shows many are still waiting until their options have narrowed.
“As more families find themselves exposed to potential IHT liabilities, early engagement and clear planning have never been more important.”
