bulletEDITOR'S PICKS

 

Sesame fined more than £1.5m for 'undermining' RDR

From United Kingdom Oct 30 2014 @ 14:58

The UK’s most complained about advisory firm, Sesame, has been fined over £1...
view article

Barclays accused of ‘betraying duties’ to obtain Saudi licence

From United Kingdom Oct 30 2014 @ 10:41

A Saudi businessmen is suing Barclays for $10bn in damages, claiming the company struck a secret...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

Polar Capital unveils European income fund for new hire Davis

Polar Capital unveils European income fund for new hire DavisPolar Capital has unveiled details of its European Income Fund to be run by ex...
view article

Are offshore structures still advantageous in...

From Tax & Regulation Oct 31 2014 @ 10:30

Emirates NBD reaches record assets following...

From Middle East Oct 31 2014 @ 04:00

MORE FROM Products

LATEST NEWS

Annual tax gap figures a ‘political football’

Annual tax gap figures a ‘political football’HMRC’s annual publication of tax gap figures, while arguably “...
view article

Brazil’s pension sector courts Nordic bank

From Products Oct 30 2014 @ 15:10

Sesame fined more than £1.5m for '...

From United Kingdom Oct 30 2014 @ 14:58

MORE FROM United Kingdom

LATEST NEWS

SJP closes on £50bn FuM, boosted by high Q3 sales

SJP closes on £50bn FuM, boosted by high Q3 salesNew business at St James’s Place increased by almost 20% over the third...
view article

Barclays accused of ‘betraying duties’ to...

From United Kingdom Oct 30 2014 @ 10:41

Nikko AM to launch first in series of ASEAN...

From Asia Oct 30 2014 @ 08:56

MORE FROM United Kingdom



Financial advisers 'most trusted' HNW wealth managers, Coutts survey finds

From News Jul 22 2013 BY: Ann-Marie Corvin , Reporter , International Adviser

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


Most HNW individuals trust financial advisers over all other types of wealth manager, according to a report published today by private bank and wealth manager Coutts.

The survey, 'behind closed doors of inheriting the family wealth', collated the views of 270 millionaires (those with at least £1m in liquid assets) and found that over three quarters relied on advisers to help them manage their wealth, with just over a third (34%) citing advisers as their most trusted source.

‘Family friends’ were the second most popular choice (15%) with accountants (14%) and lawyers (13%) closely following. Only 6% cited ‘family office’ services while another 9% simply denoted their preferred wealth manager as ‘other’.

The report found that many families preferred not to deal with big organisations where they could be dealing with a wide range of people, many of whom they might only ever speak to once.

As the report stated: “They want a consistent, long-term, one-to-one relationship with an adviser who will be available to speak with them regularly.”

However, the report also added that many families raised concerns about the level of skills and ability of advisers.

"Those with relationships with small firms often found that as their wealth had grown, it stretched the ability of their advisers to cope with the demands of providing accurate and helpful advice," it stated.

The report also noted that: “Families also want the opportunity to use the experience of their advisers to learn about how other families are dealing with the transition of wealth."

While parents are often keen for their children to use the same advisers as them, only 17% of those surveyed stated that their children know or have a relationship with their advisers. While 29% of children surveyed want to forge their own relationships, the majority are open-minded about using their parents’ advisers, provided they can trust, rely on and relate to them.

Elsewhere, the report warned that in general, HNW individuals are not taking enough measures to preserve their wealth for future generations, with multiple marriages, secrecy over the size of fortune and a lack of up-to-date wills only fuelling the problem.

The survey revealed that one third of respondents (37%) admitted to suffering serious conflict within the family when it came to dividing up the money and assets and over half (58%) did not have an up-to-date will in place.

It also revealed that one fifth of parents were keeping their true wealth a secret from their children over fears it will quash any aspirations they may have, or protect them from inadvertently revealing too much information to people who may then befriend them ‘for the wrong reasons’

Despite this, barely a quarter (23%) of parents would consider insisting on or even raising the idea of a prenuptial agreement to inheritors, despite divorce rates of 42% in the UK.

The survey pointed out that inheritance planning is further complicated by multiple marriages. In the UK, 46% of marriages are subsequent marriages which result in around 2.5 million step-children.

Another key concern for HNW families were tax issues, with 56% of HNW individuals worried that they pay too much tax.  For those who have recently earned their wealth, inheritance tax (IHT) is seen as a major issue. Many feel that, having already paid income tax, capital gains tax and other taxes on their wealth, paying up to 40% in IHT on top is unfair and could place a burden on the next generation.

Those who have inherited wealth meanwhile, were more familiar with tax implications, and while they often regard it as unfair, they have more time and experience to plan sufficiently for the transition ahead.

Regular changes to tax and trust laws were also a concern for many, making long-term planning a challenge, especially for complex estates.

Other key findings:
  • It‘s estimated that £1 trillion will pass down from one generation to the next over the next 20 years in the UK
  • Family Wealth must grow 87% over 25 years to break even
  • Nearly half of all the UK’s HNW individuals remain undecided on how best to divide up their estate between heirs
  • One in 33 families still opt to pass on wealth to the eldest male
  • 30%of HNW individuals begin their wealth preservation plans after the age of 55
 

 

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...