It has been dubbed ‘The Great Wealth Transfer’ – the shifting of demographics and finances that will see record levels of wealth handed down to younger generations over the next few decades.
The ageing baby boomer generation has triggered a sweet spot for intergenerational wealth transfers. It is expected that more than £5.5 trillion will pass down from one generation to the next over the next three decades.1 The huge amount of wealth has been buoyed by years of soaring house prices and rising values of defined benefit pension schemes, which have driven UK household wealth to £11.2 trillion.2
When it comes to intergenerational wealth succession, the age-old issue of balancing the interests and needs of immediate and wider family remains. But so too does upholding family values, promoting a vision and making sure that your wealth is there for subsequent generations to beneﬁt from. Add in human elements such as perceptions, emotions, temperament and ability, and it is easy to see why ﬁnding the right balance can be a complex and daunting task.
But while wealth succession planning is a challenge, it is one that can be overcome. A carefully considered plan can offer your family protection against wealth erosion, open up legitimate tax mitigation opportunities and, importantly, give you peace of mind.
To download your copy of Spotlight On: wealth transfer, please click the button below.
Sources: 1Kings Court Trust. 2ONS, National balance sheet estimates for the UK: 2021.
Tax laws are subject to change and taxation will vary depending on individual circumstances. Investments can go up and down in value and you may not get back the full amount originally invested.