Business opportunities | for Financial Advisers The rise of the UK’s inheritance economy Providing new insights into an area of growing importance to the UK economy – intergenerational wealth transfers Rachael Maskell Regional Sales Manager
Business opportunities | for Financial Advisers Learning objectives Understand the key drivers behind the inheritance economy Analyse both the opportunities and risks this presents Calculate the potential growth this presents to your business Learn how you can take advantage of this opportunity
Business opportunities | for Financial Advisers If one of your clients parents passed away, would they call you? If one of your clients passed away would their children or spouse call you? Do you know how many of your clients are named as an Executor in another persons Will?
Business opportunities | for Financial Advisers Growing interest in IGWT
Business opportunities | for Financial Advisers Growing interest in IGWT
Business opportunities | for Financial Advisers The wealth boom in the UK Housing as a driver of wealth • Avg. house prices rose by 273% between 1996 and 2016 • Homeownership rises for >65’s and <35’s Financial wealth • Total net financial wealth increased 172% between 1995 & 2015 • Avg. annual growth 2009 to 2015 was 7.5% The concentration of money and wealth • Total net financial wealth increased 172% between 1995 & 2015 • Avg. annual growth 2009 to 2015 was 7.5%
Business opportunities | for Financial Advisers An ageing population Avg. UK life expectancy: 81 >60’s now outnumber <16’s Care fees issue? • Avg. term 21 months • Avg. annual cost • £31k Care Home • £44k Nursing Home
Business opportunities | for Financial Advisers Inheritance Avg. inheritance in 2017 = £62k Avg. inheritance in 2027 = £92k £5.5 trillion over the next 30 years
Business opportunities | for financial advisers Clients, financial advisers and wealth The majority of clients are aged over 50 The majority of wealth is held with people aged over 50 The majority of IFA’s are aged over 50
Business opportunities | for financial advisers Wealth transfer and client retention The top reasons beneficiaries choose not to continue to work with an adviser…….. • Lack of an existing relationship • Desire for greater control • Want more convenience
Business opportunities | for financial advisers Financial services and probate Increasingly Financial Services are offering a probate service, or support • 42% agree that this will continue • But the public view probate as a legal service ….however consumers re changing their opinion
Business opportunities | for Financial Advisers Estate Administration Legal and tax Protecting your family Dealing with property From applying for probate (or An estate administration provider Property valuations and specialist confirmation in Scotland) to dealing should take on full responsibility and insurance cover. Management of all liability so that your clients don’t have aspects of the sale on your client’s with inheritance tax, Estate to worry. That means if there’s a claim Administration involves a significant behalf should they wish. on the estate, they’re covered. amount of specialist legal and tax work. £ Paying inheritance Paperwork Valuing assets & debts Interim payments to beneficiaries Dealing with HMRC, utility providers, As part of the estate administration quickly and regularly. Your client and resolving pension enquiries. These process, everything has to be dealt their family should receive whatever tasks are a burden at a difficult time. with. Every detail should be managed they’re entitled to as soon as possible. on your client’s behalf so they have Completion of all of the paperwork, so your clients don’t have to worry. complete peace of mind.
Business opportunities | for financial advisers Did you know? There were 530,000 deaths in the UK last year. Rising to 800,000 by 2047 Approximately 50% of these had require professional support 750 people every day who will seek a professional service. 11,000 in 2047.
Business opportunities | for financial advisers The opportunity This creates opportunities and benefits for Financial Advisers to: 1. Support existing clients: Deliver more value 2. Acquire new clients: Gain direct access to new potential clients in need of financial advice
Business opportunities | for financial advisers Case study 1. The niece was delighted A law firm quoted to with the benefits of the The client died in administer the service she received via estate for a fee of March 2017. The her late Uncle’s financial 2.5% of the estate adviser estate was worth value - £72,500 £2.9 million 2. The beneficiaries were delighted that their The Adviser inheritance was protected as much as provided their quote The client’s possible – £11,525 Adviser 3. The Adviser was introduced their The Adviser was delighted to have helped his late clients family, EA service to the introduced to the whilst securing a number Executor beneficiaries from of new clients in the the estate process
Business opportunities | for financial advisers Case study 1. MR P was relieved that The clients mother- The estate, worth all the work and hassle in-law, passed away. £300,000, was left in its of acting as an executor Mr P was the sole entirety to Mrs B was taken away from Executor him Mrs B used some of the His Adviser had money to pay off her 2. The beneficiary was previously introduced outstanding mortgage delighted that their their EA service and inheritance was For the remainder the protected as much as the benefits it Adviser was able to possible provided offer financial advice. 3. The Adviser was It was clear to Mr P The Adviser took her on delighted to have that he would turn to as a new client with helped his client, whilst his Adviser when the over £150,000 in cash securing a valuable new time came to invest client in the process
Business opportunities | for financial advisers Conclusions The inheritance economy is driven by three key factors Probate sits within Financial Services Financial services need to be prepared, and act
Business opportunities | for Financial Advisers If one of your clients parents passed away, would they call you? If one of your clients passed away would their children or spouse call you? Do you know how many of your clients are named as an Executor in another persons Will?
Business opportunities | for financial advisers Thanks & any questions? Rachael Maskell Regional Sales Manager Rachael.maskell@kctrust.co.uk
Hello We’re Kings Court Trust… Business opportunities | for financial advisers
Business opportunities | for financial advisers
What exactly does this mean? In the unfortunate event of someone’s death, we’re trusted to simply……. ‘take complete care of their affairs’ Helping families to move on Business opportunities | for financial advisers
• Setting up a Trust in the Will • Varying the terms of a Will for tax purposes • Arranging for a pet to be re -homed It’s an excellent service and we have helped thousands of families to move on. We hope to help thousands more. Business opportunities | for financial advisers
Don’t wait, get in touch……. www.partnergrowth.kctrust.co.uk 0300 303 9000 info@partnergrowth.kctrust.co.uk Business opportunities | for financial advisers
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