Three in five advisers report family disputes during IHT planning

Over three in five (63%) advisers have reported encountering family disputes while assisting with inheritance tax (IHT) planning, according to new research from Downing.

The investment manager’s study with financial advisers and wealth managers found that family disputes are more likely during IHT planning than when estates are settled, after just 26% questioned said they had experienced family tension over estates.

Downing’s research, based on interviews with 100 UK advisers, revealed that 11% of respondents had never experienced any family disputes over either IHT planning or estate related.

Thirty per cent of advisers said they “always” ensure other family members are involved when clients initially contact them about IHT planning, and a further 58% say they “usually” do, while 10% said their first meeting is with the client before involving other family members. Just 2% said their policy was to exclusively communicate with the client.

Downing said its study also indicated that most wealth managers and advisers regard involving clients' families in IHT planning as beneficial to their business. The study found that 74% of those questioned believe that involving family members in IHT planning is an important part of growing their business, while another 23% agreed that while involving family is beneficial to their business, it is not the only reason they do so.

“Inheritance can be emotive for families and that is certainly reflected in the experience of advisers,” head of retail sales at Downing, Mark Dunn, said.

“It is striking that advisers see more family disputes during IHT planning rather than over estate settlement, possibly demonstrating the wisdom of involving families from the start. It is also generally good for adviser businesses to involve family members in IHT planning as it introduces the adviser to the next generation which could help make them a client in the future.”



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.