This site uses cookies.   

Wealth Transference - It's not just in the advice

August 23th 2019 – Written by Jonathan Chorley

Wealth Transference – It’s not just in the advice

The Spectrum Group, a US based research and consulting group, launched a study into the effectives of the transition of wealth to individuals born between 1946-1964 also known as the ‘baby boomer generation’ and any changes the baby boomer generation would make when transferring their own wealth to their beneficiaries.

The results of this study were not favourable, not based on the financial or legal advice that these individuals had received, but as a result of the difficulty that families have when discussing their financial affairs.

To improve the effectiveness of transferring wealth to future generations, the following points are worth consideration –

  • Do your heirs know your Estate Plan?
  • Have your heirs read your Will and other Estate Planning documents?
  • Are your heirs in communication with your legal and financial advisers?
  • Are your heirs familiar with the investment strategy and goals?

The above may help to prevent family feuds from forming, particularly where certain members feel they’ve not received ‘their share’. Furthermore, it may assist in preserving the wealth created by previous generations.

This is becoming ever more important as Inheritance Tax (IHT) receipts in the UK are forecast to rise to 2023-24 in the UK (see chart), despite the increasing Residential Nil Rate Band.

EST. 1999