Financial advisers in the UK are expecting a “boom” in enquiries on inheritance tax (IHT) planning, research by advice network The Openwork Partnership has found.
Currently, two in five planners (38%) have reported an increase in demand from clients looking to set up an IHT plan in 2020.
But 60% expect this to grow even further throughout 2021, with 19% claiming there will be a significant increase.
Around 11% of the average adviser’s client base is actively seeking IHT advice, the survey of 100 advisers showed.
The top reasons for creating an inheritance tax plan are:
- Greater awareness of the impact of IHT – 56%;
- Advisers proactively discussing the issue with their clients – 47%;
- Rising property prices – 43%;
- Pensions being a more attractive way to pass down wealth – 41%; and,
- Covid increasing clients’ interest in carrying out financial reviews – 25%.
According to The Openwork Partnership, the average client looking to get IHT advice is 62 years old; while a quarter of respondents have seen an increase in the number of families engaging in the process last year.
Mike Morrow, chief commercial officer at The Openwork Partnership, said: “Inheritance tax has so many different elements to it, it can often be overwhelming and difficult to know what the best options are for you.
“The covid-19 pandemic has encouraged many to reassess their finances and ensure everything is as it should be. It’s good to see more people enlisting the help of a professional and parents bringing their family along to start the adviser process early.”
