Take 5 steps to access growth opportunities from this effect

5 ways to safeguard the funds under your management

  • STEP 1 – Add the Inheritance Economy to your next Board meeting agenda

    Financial advisers and wealth managers need to start talking about the Inheritance Economy now.

    It is vital that your senior management understand the risks posed to your organisation as a result of this shift in intergenerational wealth.

    Agreeing a strategy now will allow you to prepare your business for this transfer of wealth and help you implement new services to help capitalise on this opportunity.

  • STEP 2 – Identify the value of client base at threat in your firm

    The UK’s wealth is concentrated in the hands of the older generation. However, as mortality rates increase, the number of younger adults inheriting significant amounts is also set to rise. So, you might want to ask yourself:

    How many of your clients are aged 70+?
    And what % of total funds under management do they account for?

    Do you have a strategy in place to build relationships with the family members who are likely to inherit your clients’ wealth?

    If a proportion of your clients are in the older generation and you don’t have a strategy in place to support their families when they pass away, you could end up losing assets under your management if these beneficiaries do not become clients.

  • STEP 3 – Define measures and support sources to mitigate risk

    It is essential that financial advisers begin to establish links with the generation who are set to receive this extraordinary amount of inheritance. Finding ways to engage with the families of clients, rather than clients alone, could be one way to ensure you don’t miss out.

    You may already provide later life planning services but what do you do once your client passes away? Providing an estate administration service can allow you to naturally open up conversation about how your client’s wealth will transfer to their family.

    Many advisers struggle to find the best way to address this, particularly if they’ve never had a reason to talk to them before. But simply asking clients the question, ‘are you an executor in anyone’s Will?’ means you can begin talking about your services and how you can help – without the need to discuss their own death.

  • STEP 4 – Target opportunities to capture value

    Providing an estate administration service can also help the clients you work for right now. Do you know how many of your clients are named as an executor on their parents’ Wills?

    Anyone who has been an executor will be aware of the difficulties it poses, as dealing with the death of a loved one is hard enough without the administrative and legal burden that comes with it. For advisers, this is a key time when they can support the family and earn new client relationships.

    Offering an estate administration service means you can position yourself as their ‘go to person’ to help them deal with any family bereavement.

  • STEP 5 – Develop a strategy for success

    To make the most of the Inheritance Economy, financial advisers need to take this seriously and consider how they can best help their clients at a difficult time.

    Kings Court Trust provides a service for financial advisers which allows them to deal with the estate administration for the family when the time comes, rather than passing them onto a third party where it is much harder to determine what level of service they receive.

    Positioning yourself as an estate planning specialist will help you gain new clients and retain/grow funds under management.

    If you would like to find out more about how we can support your clients and their family following a bereavement, please contact us on 0300 303 9000 or email partners@kctrust.co.uk.

Test your knowledge!

Home ownership has declined for all age categories except from:

Rising levels of unaffordability have contributed to a situation in which homeownership has declined sharply for those under the age of 35, while ownership rates have actually risen slightly for over 65s. As such, a rising proportion of the UK’s housing wealth is concentrated in the hands of older age groups.

Just how quickly will the pounds pass?

If you would like to talk to Kings Court Trust about the inheritance economy, or how our market leading estate administration service could help support you and your clients, please contact us on:

0300 303 9000 or partners@kctrust.co.uk

Follow the conversation #inheritanceeconomy

Now Available! New research providing insights into intergenerational wealth transfers Download Part 2.0!