St James’s Place is planning a series of new product and service launches this year, aimed at helping its advisers and their clients with the challenges of intergenerational wealth.
These include a lasting power of attorney service, third party insurance products, estate planning through gifting, a probate support service and work on developing a later-life strategy.
The moves follow SJP teaming up with Metro Bank at the end of April to launch an inter-generational mortgage range, designed specifically for parents and grandparents who wish to support their children or grandchildren in buying a first home.
SJP’s joint chief operating officer Iain Rayner admitted Metro Bank were initially sceptical and “took some persuading” to help create the product, but are now fully on board, and he expects them to launch something similar under their own brand further down the line.
“We funded the development costs, so we have 12-month exclusivity on the product,” explained Mr Rayner, who added that it will come under St James’s Place, powered by Metro Bank branding.
Eóin O’Gorman, strategy adviser at SJP, laid out the other parts of the wealth manager’s response to client demand for help in funding the younger and older members of their family, as well as thinking about their own retirement.
Mr O’Gorman said: “The lasting power of attorney service is an attempt to reduce the friction that currently exists, so we’ve been working with solicitors to bring down the price point and administrative burden.
“There will be a single form to sign and a reduced fee for SJP clients.”
The product is due to launch in the next couple of weeks, he noted.
George Bull, senior tax partner at RSM UK, said specific intergenerational financial products were still relatively unusual, although not new. “Back in 2012, Family Building Society was offering an intergenerational mortgage, but I’m not aware of any clients who have one,” Mr Bull stated.
“Lending down (or up) the generations has always happened, but is becoming more common as a result of two property-related factors. First, to help first-time buyers get on to the housing ladder, second, the cost of nursing home care.”
Mr Bull also noted that intergenerational asset transfers for estate-planning purposes have been made for many generations.
“Gifts were frequently made from parents to children, with the parents reserving rights to occupy or enjoy the asset in question, but inheritance tax changes have rendered these to be ineffective or unattractive.”
