In Focus: Intergenerational Wealth  

How to help clients manage inheritance hopes

  • To understand what young people's mindset is towards inheritance.
  • To be able to explain why they need to become financially independent.
  • To be able to communicate ways to help younger generations start saving.
CPD
Approx.30min

"A later inheritance means the capital is less likely to make a significant difference to the children’s financial lives", he says.

Honest conversations

There are, perhaps, too many honest conversations in Great Expectations, which can sometimes take up entire chapters. If this had been today's world, Estella would simply have ghosted Pip and blocked him on social media.

But for Page, advisers need to encourage their clients to have an "honest and open conversation about money" with their families. 

This is to make sure everyone has clarity over what there is, and to prepare the children. 

He adds: "Careful discussion and good financial planning may mean that it is possible for parents to make gifts during their lifetime (if that is what is desired).

"This can mean children get money when it is more useful, and the parents get the pleasure of seeing the benefit.”

Stimpson adds: "Remember, the generation that millennials are expecting to inherit from have benefited from pension freedoms. 

"Without the right advice and behaviours, this could mean they don’t even have enough money to support themselves, let alone have anything left to pass on.

"Anyone relying on an inheritance should start putting their own plans in place as soon as possible - the earlier you start, the more time you have to build up a nest egg.

"A simple budget including savings goals is a great start - it can allow you to understand how much disposable income you have, and to prioritise paying yourself (i.e. saving) first."

simoney.kyriakou@ft.com

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Rosvall, what should young people be doing for themselves?

  2. Stimpson says relying on an inheritance is NOT ... what?

  3. What does Sandell say the first Child Trust Fund kids should do when they reach 18?

  4. How does Glancy describe pension contributions?

  5. What is less likely to make a difference to a child's financial life, according to Page?

  6. What do clients need to have with their families, according to Page?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To understand what young people's mindset is towards inheritance.
  • To be able to explain why they need to become financially independent.
  • To be able to communicate ways to help younger generations start saving.

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