Over the next 30 years it is predicted that a generational wealth of an estimated £5.5 trillion will be transferred between generations. There is now the expectation that current generations will receive an inheritance of some type in the future, with almost a third looking to receive £50,000 or more in either fixed asset such as property or money.

The need for intergenerational financial planning has never been greater. Baby boomers (those in their 50s and 60s) and the ‘silent generation’ (those aged 70 and over) are particularly important, as they hold the majority of the UK’s wealth.

Unlike previous generations whereby there was very little to pass through in inheritance to families, it is now becoming an expectation amongst those aged 25-45 that there will be property and possibly financial wealth coming their way in the future, and they are using this prospect as part of their future for retirement and mortgage payments.

Whilst an expected inheritance could be on the way at some point, there can also be unrealistic expectations as to what they will actually receive. If parents do not have a Will then nothing is guaranteed, but also there are a number of possible inheritance tax implications to consider that can change over the course of years to come, plus if there is not the correct Estate Planning in place then further implications can impact on how assets and finance is distributed.

Working with your clients now to help them plan for the future will not only help ensure that there is an inheritance passed down, but that it is done so correctly and family wealth can be transferred as a client wishes for their future generations. For those clients that have or will receive an inheritance, then there is a part to play in how to best invest this for the future and use the opportunity wisely.


Considerations when planning generational inheritance:

The expectation of a future inheritance is there, but is the planning for this in place?

So the simplest aspect of all - is there a Will? No Will means an inheritance is not guaranteed – it’s that simple. With no Will in place it will be for the courts to decide what happens to any assets, property and finances.

By having a Will in place then the basics of an inheritance are covered and wishes met.



Passing wealth down through the generations is a sensible move, but can be fraught with difficulty – not least because much of the nation’s wealth is tied up in property. Over-50s own 75 per cent of Britain’s housing wealth, while under-35s account for less than 6 per cent, according to estate agent Savills, pointing to a huge divide. The younger generation is struggling to get on the housing ladder and start their savings. But valuable wealth of the older population can also lead to huge liabilities in inheritance tax which can vary from circumstance to circumstance.



It’s important to have clarity on assets and financial circumstances. Does your client wish to gift anything now or in the future? This needs to be considered carefully within the remit of Inheritance Tax. When a gift is made can be the difference between paying IHT or not in some circumstances.

A gift can be:

  • anything that has a value, such as money, property, possessions
  • a loss in value when something’s transferred, for example if the family home is sold to the child for less than it’s worth, the difference in value counts as a gift Plus the client could find this causes serious issues if, unfortunately, the child found themselves insolvent or they needed help with care later

Inheritance tax will be charged if gifts are worth more than £325,000 in the 7 years before a death. The tax is charged on a sliding scale known as ‘tapered relief’ up to 40%.


Family involvement

Encourage clients to involve their family on discussions when planning the distribution of their wealth. This will ensure everyone knows what is going on, helps avoid future debates and will encourage other family members to consider their own financial future and planning.


Too reliant on inheritance?

But with this heavy reliance on generational wealth, there is a growing concern over what the under 45s and the millennials will do with their new-found wealth. Will they know how to handle it, to look after it for their own future generations? This is where you can help even further for your future clients by ensuring they have their Wills and Estate Planning in place, and you then act as their financial adviser.


Effective Estate Planning for successful wealth transfer

If you have clients who are looking to make their future more secure for themselves and the next generation we can help ensure they can do so in the most efficient and effective way for them, from their Will, to Property Protection trusts to Life Interest trusts and more.

Effective Estate Planning for future wealth transfer is vital to not only ensuring wishes are met, but helps ensure wealth is passed on tax efficiently, and is distributed in a way that helps add future security to family wealth and your clients stays yours giving you the opportunity of a future investment client Bank.


Contact the BTWC team now on 01522 500823 so we can see how we can secure your clients family wealth for the next generation.