Inheritance Tax 

Guide to end of life planning

  • Consider how advisers should approach end of life planning with their clients.
  • Understand what clients need to know about IHT and leaving a will.
  • Grasp whether demand for end of life planning will increase with changing demographics.
CPD
Approx.60min
Guide to end of life planning

Introduction

Ageing and the prospect of facing up to one's death is not easy.

As a subject matter and concept, it is not only hard to comprehend but it can be made more challenging by ill health or the decline of a person's mental faculties.

The costs of long-term care are climbing and this can be a time when financial pressures seem to mount.

But it can also be an enjoyable period in someone's life - perhaps they finally have the free time, having retired, to do what they want, such as spend time with family members. Or they may have enough wealth to be able to afford a comfortable retirement.

Whatever the scenario, those who have planned for what happens as they reach the end of their life are likely to be in a better position than those who have not, and a good adviser will broach this subject sooner rather than later with clients.

Henny Dovland, business development manager at Time Investments, suggests it is a "long-term, ongoing conversation among planners and their clients".

"When this type of planning is right, I think the positive impact it can have on families and the legacy someone leaves is huge," she says.

On the end of life planning 'to do' list should be writing a will, inheritance tax planning, and leaving enough wealth to pay for care into old age.

Importantly, as family relationships become more complex, these financial considerations will need to be revisited during the client's lifetimes, often several times, to account for any changes in client wishes.

Fiona Tait, technical director at Intelligent Pensions, notes: "Advisers are ideally placed to help people balance the need to meet their own expenses, including those that might arise in old age, with the desire to pass their hard-earned money to the people they want to have it as tax efficiently as possible."

This guide asks how advisers can tackle the often-sensitive subject of end-of-life with their clients. 

It will also consider what clients need to know about inheritance tax and will writing, and finally, whether there is likely to be more demand from advisers for this type of planning advice.

This guide is worth an indicative 60 minutes of CPD.

Contributors to this guide: Henny Dovland, business development manager at Time Investments; Joe Roxborough, chartered financial planner at Ascot Lloyd; Helen O'Hagan, technical manager in Prudential's technical team; Scott Gallacher, chartered financial planner at Rowley Turton; Stuart Wilson, channel marketing director at more 2 life; Femi Folorunso, consultant at Mattioli Woods; Tim Bennett, head of education at Killik & Co; Fiona Tait, technical director at Intelligent Pensions; Jessica List, pensions technical specialist at Curtis Banks; Adam Hildred, financial planner at Brewin Dolphin; Mark Moran, director of intermediary sales at Golden Charter; Alistair Wilson, head of retail platform strategy at Zurich; Time Investments; Office for National Statistics.

Ellie Duncan is deputy content plus editor at FTAdviser

In this guide

CPD
Approx.60min
  1. What does Ms Dovland think is "absolutely crucial for advisers to try and open up those conversations" about end of life planning with clients?

  2. What is almost always a major asset for investors, according to Mr Roxborough?

  3. Which of these is not one of the three most common IHT trusts, according to Ms O'Hagan?

  4. Which of these groups of people is not on the list of those Mr Hildred thinks it is especially important to have a will?

  5. How many people planned their funeral in advance in 2017, according to figures quoted by Mr Moran?

  6. Advisers need to ensure they are adapting their businesses to cope with what, Mr Wilson says?

Nearly There…

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

You should now know…

  • Consider how advisers should approach end of life planning with their clients.
  • Understand what clients need to know about IHT and leaving a will.
  • Grasp whether demand for end of life planning will increase with changing demographics.

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