The financial services industry faces huge challenges and opportunities as wealth cascades from older clients to the next generation.
The challenge for financial advisers is how to continue to manage wealth on their client’s behalf as it is dispersed from one generation to another over time. This is not a given, and financial advisers could lose millions of pounds of assets under their management if beneficiaries and gift recipients do not become clients.
However, there are some substantial opportunities for financial advisers. Illiquid property wealth is set to be sold off on an enormous scale as individuals inherit estates over the coming years – increasing the stock of cash that could be invested and the number of individuals needing investment advice. This shift from property wealth to financial wealth could significantly increase the amount of funds under management by financial advisers, but only if they seize and take advantage of the developments that are set to take place over the coming years.
Kings Court Trust is one of the UK’s leading estate administration providers. We set out to disrupt, challenge and change our industry for the better by putting the family first. As a result, we create value for our business partners, both commercially and by providing the best possible service for the family. We know that the Inheritance Economy will significantly impact the financial services industry. That’s why we are committed to working with financial advisory firms to assist advisers, their clients and their clients’ relatives in the most effective way possible. At a difficult time, we help build high levels of trust between the advisers and beneficiaries. And we aim to encourage this relationship to flourish in the long term.
The Centre for Economics and Business Research (Cebr), is one of the UK’s leading economics consultancies. To find out more please visit www.cebr.com.
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Official research paper