Wealth transfer advice demand to surge in next three years

How to limit IHT liabilities and gift money main areas of focus for clients


The issues of wealth transfers and how best to deal with them and next gen clients have been on everybody’s lips for some time now.

But according to research by M&G Wealth, carried out by NextWealth, the topic is going to grow in popularity even more.

Nearly 60% of advisers reported that demand for wealth transfer advice has increased over the last three years, and 71% believe this trend will keep growing with a an even bigger surge in inquiries over the next three years.

The vast majority of financial advisers surveyed (84%) confirmed they are currently advising clients on wealth transfers as well.

M&G also found that financial advisers working for larger firms – which it defined as those that have at least 10 client-facing professionals – are more likely to receive wealth transfers queries compared to smaller businesses – 70% and 59%, respectively.

‘Proactive approach’

When it came to why people are seeking advice on how best to pass on wealth, the most common reason in 67% of cases was to limit inheritance tax liabilities, followed by clients having money to gift (65%).

Around nine-in-10 (88%) believe it is important to meet a client’s spouse to be able to offer more tailored advice, especially if their client is retired.

But just meeting spouses is not enough, as 59% of those surveyed said that reaching out to the dependents of the retired clients can be just as important – with 30% stating their business has specific packages and fees available for children of current customers.

Justin Blower, director at M&G Wealth said: “Our research offers valuable insight into wealth transfer patterns. We know that against the current economic background, the increasing threat of double-digit inflation, continued market volatility and ongoing geo-political tensions financial advice is more valuable than ever.”

Heather Hopkins, managing director of NextWealth, added: “Much focus has been placed on intergenerational wealth. But wealth often transfers to the surviving spouse. Women stand to inherit much of the UK’s wealth before it reaches the next generation.

“According to the findings of this research, the majority of financial advisers are taking a proactive approach to engaging with the spouse of their clients, which is good news for all concerned.”

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