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Discover more about intergenerational wealth transfers

Our two part series provides a powerful insight into the rise of the UK’s inheritance economy

Research Paper 1
Passing on the Pounds: the rise of the UK’s inheritance economy

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Research Paper 2
Wealth Transfer in the UK: the continuing story of the inheritance economy

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Our next research report is now available

The second part of our inheritance economy report further examines the increasing importance in the UK of intergenerational wealth transfers and the opportunity available to the financial services industry.

Both parts of research were commissioned by Kings Court Trust and produced by The Centre of Economics and Business Research (Cebr).

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DOWNLOAD PART 1

Passing on the pounds 2.0…

This is the second instalment of the inheritance economy research, which seeks to provide new insights into an area of growing importance to the UK economy - intergenerational wealth transfers.

The report uncovers evidence which shows the financial services community are not prepared to deal with the inheritance economy successfully. However, with the right approach, there is a fantastic opportunity for advisers.

Intergenerational transfers are taking off in a big way…

With an ageing population and rising levels of wealth, the UK is set to see substantial growth in the number of inheritances and financial gifts taking place each year. It is estimated that over £5.5 trillion will pass between the generations within the next thirty years. This amount of inheritance is unprecedented and raises both opportunities and threats for the financial services industry.

The £5.5 trillion market

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The sums involved are truly substantial.
This represents a massive opportunity for financial advisers

As well as challenges, there are some substantial opportunities for financial advisers. Illiquid property wealth is set to be sold off on an enormous scale as individuals inherit estates over the coming years - increasing the stock of cash that could be invested and the number of individuals needing investment advice. This shift from property wealth to financial wealth could significantly increase the amount of funds under management by financial advisers but only if they seize and take advantage of the developments that are set to take place over the coming years.

*Macroeconomic forecast provided by Cebr


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Rising levels of wealth amongst over 65s

This ‘inheritance economy’ creates challenges for policymakers, families and the financial advisers who potentially stand to lose millions of pounds of assets as they cascade from one generation to another.

 

Real concerns mixed with real opportunity

 

The challenge

The challenge for the financial adviser community is how to continue to manage wealth on their client’s behalf as it is dispersed from one generation to another over time. This is not a given, and financial advisers could lose millions of pounds of assets under their management if heirs and
gift recipients do not ultimately
become clients.

The opportunity

Illiquid property wealth is set to be sold off on an enormous scale as individuals inherit estates over the coming years - increasing the stock of cash that could be invested and the number of individuals needing investment advice. This shift from property wealth to financial wealth could potentially significantly increase the amount of funds under management by
financial advisers.

 

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At Kings Court Trust, we know that this change in wealth is going to significantly impact the financial services industry

We are committed to work with financial advisory firms to provide a service which helps advisers to assist their clients and their relatives in the most effective way possible at a very difficult time, and help to build a high level of trust between the advisers and the beneficiaries. Ultimately, the aim is to encourage this relationship to be maintained for the long term.

If you would like to talk to Kings Court Trust about the inheritance economy, or how our market leading probate and estate administration service could help support you and your clients, please contact us.

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