Blog Article

Intergenerational financial planning

Intergenerational financial planning

Date: 10 January 2023 | By: cosgrove

With the largest ever intergenerational passing of wealth projected over the next few decades, the need for inheritance advice has never
been greater. Intergenerational financial planning planning can also help with more immediate financial needs, particularly when generations work together to find solutions that support the whole family both now and in the future.

Currently, financial pressures are proving to be a major challenge across the generations. The cost-of-living squeeze, though, is not only impacting people’s current spending power but also their future decision-making in key areas such as housing, private education or university.

A balancing act
Many families are now adopting integrated strategies, especially in relation to gifting money, to address imminent financial challenges. The aim of reducing future Inheritance Tax (IHT) liabilities inevitably remains at the heart of intergenerational planning decisions, coupled with the growing necessity to balance both today’s and tomorrow’s shifting to support children and grandchildren now.

Getting the generations involved
Intergenerational planning tends to be most effective when plans are not just focused on those who currently hold wealth. While funding
a comfortable retirement and quality of care for the ‘caretaker’ generations remain fundamental elements of intergenerational financial planning; support for younger generations and ensuring wealth passes efficiently to the right individuals at the right time have become increasingly important.

Encouraging conversations
Sharing a financial adviser within families has become increasingly commonplace; offering significant benefits, particularly when it comes to
joining up a whole family’s needs with inheritance and gifting strategies, while treating all family members fairly.

If your family needs help with any aspect of intergenerational planning, we’ll be happy to assist by encouraging more open financial conversations across the generations. Providing your family with lasting benefits means taking action now, so please get some clear and trusted inheritance tax planning advice.


Source: Quilter Essentially Wealth Q4