Financial Planners are forecasting a boom in clients seeking advice on inheritance tax, according to new research.
Nearly two in five (38%) of financial advisers surveyed by The Openwork Partnership had seen a rise in demand for inheritance tax advice over the past year, whilst 60% of advisers said they expect further growth in demand this year. Almost a fifth (19%) of advisers surveyed said they expect demand to increase significantly.
The research found over one in ten (11%) of the average adviser’s client base is actively seeking advice on inheritance tax planning.
The increase in those seeking advice around inheritance planning included a growth in awareness of the impact of inheritance tax (56%), advisers proactively discussing it with their clients (47%), rising property prices (43%), and pensions becoming more attractive as a method of passing on wealth (41%).
According to The Openwork Partnership, the impact of the Coronavirus pandemic has also contributed to the rise in demand, with 25% of advisers surveyed saying more clients looking for financial reviews including advice on inheritance tax planning as a result.
A quarter of the advisers surveyed also said they have seen an increase in the number of families visiting them for advice over the past 12 months.
Mike Morrow, chief commercial officer at The Openwork Partnership, said inheritance tax planning can often be overwhelming and difficult to know what the best options are for you.
He said it is important that clients involve their families in the process. He said: “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.”
Pollright conducted research among 100 adivsers across the UK on behalf of The Openwork Partnership in January.