Intergenerational Planning to Impart Wealth
January 15, 2024
Intergenerational wealth management is key to safeguarding your prosperity now and in the future, by including the generations of your family. As intergenerational financial advisers, we know what makes a successful wealth management plan, so that you can live and leave a legacy.
Estate planning will help ensure that your future is protected with a power of attorney, and your Will ensures assets are divided as you wish them to be.
Within intergenerational wealth management, estate planning can also include setting up trusts and gifts that might help reduce conflict and provide a smooth transfer of wealth.
Trusts are a simple way to transfer wealth to your children or grandchildren without incurring a big inheritance tax bill. Trusts can have set age limits, so money can be accessed upon turning a certain age.
Inheritance Tax Planning
Inheritance tax is no longer a tax exclusive to the affluent, so putting steps in place to reduce liability will ensure that as much of your wealth as possible is passed on to your family. Our advisers are experts in dealing with inheritance tax and can work with you to help create an efficient plan that reflects your wishes.
Gifts and Gifting
Gifting is another strategy to decrease the value of your estate and reduce inheritance tax liability, as it enables you to leave assets to future generations.
To avoid gifts being used solely as a tax avoidance strategy and potential tax implications, you must survive each gift made by seven years. Limitations can be discussed with a financial adviser in a no-obligation consultation.
Later Life Planning
Financial implications will need to be considered when thinking about later life. Care fees need consideration and a discussion about where that money will come from needs to be had. These are difficult conversations that our advisers are skilled at facilitating, allowing you a safe space to consider these as a collective.
Money for Generations
Effectively managing money throughout your retirement helps you enjoy this chapter of your life while putting money aside to pass on to younger generations.
Investing In A Better Future
Setting up an investment plan for a younger family member will help ensure that some of your wealth is transferred down to them. An investment plan will allow you to frequently set aside small amounts of money that will accumulate over time. A small contribution has the potential to build into a significant amount.
Getting on the property ladder is a challenge for first-time homeowners, and more parents and grandparents are stepping in to provide financial help.
We have helped many of our clients provide financial support to younger family members when buying a house, so we can work with you to ensure this is done just the way you want it.
Work with experts
Our intergenerational wealth consultants will work with you to help future-proof your finances while making sure we find solutions for events happening in the present.
We can help create a plan that encompasses all of the above, or a mixture of the strategies, to help ensure your wealth is effectively passed on to your family.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.
Trusts are not regulated by the Financial Conduct Authority.
Written By Robert Brunt
Chartered Financial Adviser
Lester Brunt Wealth Management
Lester Brunt Wealth Management is a trading name of Lester Brunt Wealth Management Ltd
SJP Approved 29/11/2023