Your IndustryFeb 11 2020

How advisers approach the ‘death conversation’

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How advisers approach the ‘death conversation’

“And when they see that figure based on the information they’ve just given you, they’re quite astounded that you don’t need a huge amount of wealth to pay a large amount of inheritance tax.

“Talking to clients about inheritance tax planning leads to conversations about their entire estate and has sometimes resulted in us advising on assets we hadn’t previously.

“For example, we’ll often find people have investment bonds and large Isa accounts, which we wouldn't necessarily have touched before starting their estate planning.”

Octopus's report also found estate planning lead to more assets under advice — 76 per cent of advisers polled said it had led them to advising on assets they had not advised on previously — as discussing the estate gave greater visibility of a client’s assets and prompted a transfer of assets into new investments.

Other findings included that clients were increasingly wary about giving up access to capital. Nearly nine out of ten (89 per cent) advisers said their clients were more mindful now, compared with five years ago, of potentially needing access to their money in later life.

Paul Latham, managing director at Octopus Investments, said: “This kind of planning is really about the kind of life you want to live and leaving a legacy for your family. 

“In the UK the average woman at 65 is now predicted to live until 86, and many will make it well into their 90s. 

“Increasingly people want to make the most of their later years and ‘live well’, while also balancing a desire to pass down wealth with the potential of care costs.”

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