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 intergenerational mortgage range, 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 Raynor 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 got 12-month exclusivity on the product,” explained Mr Raynor, adding it will come under St James’s Place, powered by Metro Bank branding.
“It was essentially a combination of existing products with a service wrapper around,” he stated, noting this is the first of several new products being worked on in partnership with the bank.
Eoin O’Gorman, corporate strategy adviser for SJP, laid out the other parts of the wealth manager’s response to client demand for help in funding both younger and older members of their family, as well as thinking about their own retirement.
He 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.
In terms of gifting, SJP is looking at estate planning orientated around debt to try and facilitate easier wealth transfer between generations. A launch is planned for the end of the summer.
Mr O’Gorman also said SJP was looking to tackle the under-insurance problem amongst younger people, as their parents certainly do value it.
“We’re working with third party insurers to create an aggregated family insurance product - incorporating life, critical illness and general insurance cover - which can be extended to other family members under one policy.”
A probate support service is also due towards the end of this year, said Mr O’Gorman, also run by third parties but given as another option to SJP’s adviser partners.
Finally, further work on later life planning is underway, looking at different ways to support elderly clients pay for care, as many live longer past what Mr Raynor called the key age of 85.
George Bull, senior tax partner at RSM, said specific intergenerational financial products are 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,” he 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 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 ineffective or unattractive.
“As a result, more people than ever are seeking advice on how to plan their affairs as a family and in a tax-efficient manner. Outright gifts, loans, planning via wills and trusts, all have a role to play.”
