The Importance of Intergenerational Financial Advice

It is thought that over the next decade records will be at an all-time high with the amount of money being inherited from family members and being passed to the next generations. It is believed that 36,000 high net worth individuals and families will pass an estimated £127 billion down to 283,000 inheritors at an average of £500k per person in the United Kingdom.

Without honest, open discussion and adequate preparation, intergenerational wealth transfer can expose families to unnecessary taxation and awkward, unforeseen probate processes. Commonly, people are left not knowing what to do with inheritance or how to invest it. These problems can be amplified as the amounts being transferred increase, which makes it more important than ever for families to seek the guidance of professional financial advisers.

Why Seek the Advice of a Professional Adviser?

Individuals inheriting wealth generally feel better prepared to receive their inheritance than advisers think they are. This is because they are often oblivious about technicalities surrounding inheritance tax rules and tax-efficient solutions. Furthermore, there are often significant differences between an inheritor’s inheritance expectations and the reality of what they will receive, with many receiving a greater and broader range of assets than they anticipate.

A family’s desire to help educate their children about inheritance and financial matters provides a way for important relationships to be built and sustained for many years. Misunderstandings about inheritance present an opportunity for an adviser to demonstrate the value of their own services via education about financial concepts such as saving, borrowing and spending.

At Pure Wealth Management, our core value is that we remain extremely client focussed. This means that not only do we want to learn about you, but we learn about your family and objectives, in order to create a bespoke financial plan, for the future.

One of Pure Wealth Management’s main objectives during our set-up process was to adopt the most sophisticated, up-to-date technology in order to align ourselves with the demands of catering for the next generation when it comes to thinking about wealth management. Dual screen technology for interactive financial planning and long-distance meetings, electronic signatures and supplying every client with a Personal Finance Portal which enables them to track their funds 24/7 are only some of the benefits we can offer the younger generation.

Being completely independent and having a whole of market offering at our fingertips, we’re able to discuss your requirements for yourself and your beneficiaries and subsequently devise a plan to ensure that wealth is passed as smoothly and effectively as possible, while at the same time, meeting your goals and objectives.

Contact us to discuss your future plans today.


Brooks Macdonald