Dunstan Thomas discuss the opportunities and pitfalls of Intergenerational Wealth Transfers
10 Sep 2021
Sign Up Now for our next live Webinar from 12-1PM on Thursday 23rd September exploring managing the risks and benefiting from the opportunities associated with the intergenerational wealth transfer goldrush.
Total annual wealth passing from one generation to the next is forecast to rise from the current level of £69 billion to around £115 billion per year by 2027, according to a ground-breaking report from probate specialists Kings Court Trust.
This 66% increase in intergenerational wealth transfers outlined in the ‘Passing on the Pounds’ report, is expected to be heavily driven by the rise in property prices over the next 10 years.
This presents a massive opportunity for advisory firms, platforms and vertically integrated operations alike. However, recent generation-specific consumer research indicates that millennials, born between 1982 and 2004, which are set to be the primary recipients of the £1 trillion being passed down between 2017-2027 alone, are much less likely to follow the advice of their parents or automatically continue with their family’s financial adviser than previous generations. Put simply they want to take more control over what they do with their money.
The onus is on the industry then to build trust with the next generation by providing online financial education and triage services and be there for them when there is a need to step up into paid for financial advice.
How then can technology help bridge this intergenerational ‘divide’ to ensure all the good financial planning and advice given to the incumbent generation over decades is not undone in the blink of an eye? Tim Thompson-Rye, CTO of wealth manager Progeny will address this, and other questions linked to technology being developed in this area.
In addition, the inevitable requirement of migrating wealth into ESG rated investments over the next few years feels like a great hook to engage the next generation in investing for improvement in the world we live in. Dan Bland, Head of Sustainable Investment Management at EQ Investors’s Bespoke Discretionary Management Team will talk about this opportunity and about how EQ helps its clients to align their investment portfolios with their ESG profiles.
Jessica List, Pension Technical Manager at Curtis Banks Group will address more technical questions linked to moving money to the next generation tax efficiently. She will be able to answer questions linked to drawing up expressions of wishes, Inheritance Tax planning and pensions transfers with particular reference to the recent landmark Staveley case and other potential tax changes which might demand financial advice.
Please join our next live webinar at 12PM on Thursday 23rd September for what will be a lively discussion led by Dunstan Thomas’s Chief Distribution Officer Andrew Martin. Our panel will take your questions so please join:
- Jessica List, Pensions Technical Manager at Curtis Banks Group
- Dan Bland, Head of Sustainable Investment Management at EQ Investors
- Tim Thompson-Rye, Chief Technology Officer at Progeny