Nearly two out of three (63%) of advisers have reported encountering family disputes while assisting with Inheritance Tax (IHT) planning, new research from investment manager Downing shows.
Its study with advisers and wealth managers found family disputes are more likely during IHT planning than when estates are settled – just 26% questioned said they had experienced family tension over estates.
However, only 11% questioned said they had never experienced any family disputes over either IHT planning or estate related, possibly due to the general approach of almost all advisers ensuring that families are involved in IHT planning from the start.
Around a third (30%) 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% say their first meeting is with the client before involving other family members. Just 2% say their policy is exclusively communicate with the client.
The study found that most wealth managers and advisers regard involving clients’ families in IHT planning as beneficial to their business. Around 74% of those questioned believe that involving family members in IHT planning is an important part of growing their business, while another 23% agree that while involving family is beneficial to their business, it is not the only reason they do so.
Mark Dunn, head of retail sales at Downing said: “Inheritance can be emotive for families and that is certainly reflected in the experience of advisers.
“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.”
Downing commissioned independent research company PureProfile to interview 100 UK financial advisers and wealth managers using an online methodology during November 2024.
