The UK’s ‘baby boomer’ generation has more wealth than any other before – the majority of which is held up in property and pensions. The perfect storm of interest rates, property values, and pension reforms has meant that the next generation of beneficiaries are set to inherit more overall wealth than any generation before them.
However, a study by the CFA Institute** found that nearly 4 in 10 millennials cite lack of knowledge as a major hurdle to investing, as well as a lack of savings or income, with a focus on paying off debt instead. As a result, many young beneficiaries may feel like they do not know how or where to start investing.
Family relationships are rarely straightforward; simply handing money to children before they are ready is fraught with potential dangers, and getting beneficiaries to appreciate family wealth and their inheritance has its own difficulties. Furthermore, Inheritance Tax planning is a complex area that requires support and advice, and there are ways to take positive action to share wealth between the generations in a smoother and easier process.
Including the whole family in financial planning discussions can help demystify investing, and enable long-term, consistent plans for inheritance to be put in place from an early stage. Our advisers at MacDonald Partnership welcome any of our clients to start that conversation and are here to support the journey however we can.
For advice on Inheritance Tax planning and involving your family in your financial plans, please do not hesitate to get in touch with one of our Independent Financial Advisers on 01463 242242.