Inheritance tax (IHT) and estate planning clients are getting younger as support demand increases, but advisers are concerned that clients are still engaging with the issue too late, Downing has stated.

The investment firm’s latest research found that 84% of advisers and wealth managers say the average age at which clients first contact them about IHT and estate planning has fallen over the past year.

This includes 27% who say the average age has dropped considerably, as interest in IHT and estate planning has increased.

Despite clients beginning IHT and estate planning conversations at a younger age than they were a year ago, two thirds (67%) of advisers believe clients still engage with the issue too late in general.

Advisers have said that on average, they begin engaging clients on estate planning when the client is 46 years old, but 39% of advisers say they begin engagement when the client is past 50.

Downing also found that advisers and wealth managers estimate that 27% of their client base has a potential IHT liability currently, with 42% proactively contacting clients about IHT and estate planning.

A further 32% said they rely on a combination of proactively contacting clients and waiting for clients to raise the issue, while 26% leave approaches on IHT to clients.

When asked about the biggest gaps in clients’ IHT and estate planning, 47% of advisers stated that clients are unaware of the need for IHT and estate planning.

Head of product at Downing, Rebecca Ward-Howes, stated that the "biggest risk in estate planning is often delay".

She concluded: "That risk is only growing: business relief reforms are already changing the picture, and from April 2027, unused pensions will be pulled into the IHT net for the first time, catching out many families who assumed their pension was safe from IHT.

"It’s encouraging that clients are engaging with advisers earlier than before but our research shows many are still waiting until their options have narrowed. As more families find themselves exposed to potential IHT liabilities, early engagement and clear planning have never been more important.

"At Downing, we’re focused on giving advisers the tools to model these complex scenarios with confidence, and communicate outcomes to clients in a compelling, accessible way.”

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