Transferring wealth from one generation to the next is a difficult conversation topic, but with the baby boom generation expected to pass down a record-breaking amount of assets confronting this taboo has never been so important.
The next 30 years are expected to see the largest ever intergenerational passing of wealth as baby boomers – the wealthiest generation in history –pass on assets to their heirs.
Dubbed it the ‘great wealth transfer’ estimates* suggest an unprecedented £5.5tn could pass between generations in the UK.
While the significance attached this process is unquestionable, most families remain uncomfortable talking about money.
As a result, discussing money issues with children can prove a difficult task for many parents. However, it is vitally important that retirees involve their offspring in financial planning decisions if the wealth transfer process is to be successful.
Start the conversation
The key inheritance challenge remains ensuring children are ready to take on financial responsibility for family assets. Encouraging their involvement in your financial planning decisions now is a particularly good way to boost their financial literacy and ensure they are ready when the time comes. Introduce them to us and we can help you start those difficult conversations. Contact us today.
Clifford Osborne are experienced independent financial advisers (IFA) based in Sussex. We offer advice on pensions, inheritance, mortgages, investments and more. Learn more about us.
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
*Kings Court Trust, 2018
