This will be of the utmost importance if clients have children, grandchildren or certain beneficiaries they wish to pass wealth on to; if they are not married to their partner; or if they have property with someone else as a ‘joint tenant’ or own property overseas.
Individuals who want to pass their wealth on to loved ones should also consider their allowances.
While they might not wish to make large intergenerational transfers now, there is the option of making smaller gifts to children or grandchildren each year.
Up to £3,000 per individual can be made without giving any rise to IHT, and there is a separate allowance for wedding gifts.
On top of this, if spare income is available, individuals can also invest in Junior Isas or Junior self-invested personal pensions for their grandchildren.
Clients should consider all the IHT planning options available, and not just gifting, trusts, lifetime mortgages and insurance.
Our research suggests that more than 50 per cent of advisers are not regularly considering discretionary services that seek to invest in BR-qualifying companies as a solution to IHT planning, despite the benefits that these discretionary services offer, from maintaining control of assets, to drastically reducing the time a client’s estate is exposed to IHT.
Good intergenerational financial planning must start and finish with a comprehensive approach.
David Kaye is chief executive of Puma Investments
