The rise of the UKs inheritance economy Providing new insights into - - PowerPoint PPT Presentation
Business opportunities | for Financial Advisers The rise of the UKs inheritance economy Providing new insights into an area of growing importance to the UK economy intergenerational wealth transfers Rachael Maskell Regional Sales Manager
Business opportunities | for Financial Advisers
The rise of the UK’s inheritance economy
Providing new insights into an area of growing importance to the UK economy – intergenerational wealth transfers
Rachael Maskell Regional Sales Manager
Business opportunities | for Financial Advisers
Learning objectives
Understand the key drivers behind the inheritance economy Analyse both the opportunities and risks this presents Calculate the potential growth this presents to your business Learn how you can take advantage of this
Business opportunities | for Financial Advisers
If one of your clients parents passed away, would they call you? If one of your clients passed away would their children or spouse call you? Do you know how many of your clients are named as an Executor in another persons Will?
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Growing interest in IGWT
Business opportunities | for Financial Advisers
Growing interest in IGWT
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The wealth boom in the UK
Housing as a driver of wealth
Financial wealth
The concentration of money and wealth
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An ageing population
>60’s now outnumber <16’s Care fees issue?
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Inheritance
£5.5 trillion over the next 30 years
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Clients, financial advisers and wealth
The majority of clients are aged over 50 The majority of wealth is held with people aged over 50 The majority of IFA’s are aged over 50
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Wealth transfer and client retention
The top reasons beneficiaries choose not to continue to work with an adviser……..
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Financial services and probate
Increasingly Financial Services are offering a probate service, or support
….however consumers re changing their
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Estate Administration
Legal and tax
From applying for probate (or confirmation in Scotland) to dealing with inheritance tax, Estate Administration involves a significant amount of specialist legal and tax work.
Protecting your family
An estate administration provider should take on full responsibility and liability so that your clients don’t have to worry. That means if there’s a claim
Dealing with property
Property valuations and specialist insurance cover. Management of all aspects of the sale on your client’s behalf should they wish.
Paying inheritance
Interim payments to beneficiaries quickly and regularly. Your client and their family should receive whatever they’re entitled to as soon as possible.
£
Paperwork
Dealing with HMRC, utility providers, resolving pension enquiries. These tasks are a burden at a difficult time. Completion of all of the paperwork, so your clients don’t have to worry.
Valuing assets & debts
As part of the estate administration process, everything has to be dealt
complete peace of mind.
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There were 530,000 deaths in the UK last year. Rising to 800,000 by 2047 Approximately 50% of these had require professional support 750 people every day who will seek a professional service. 11,000 in 2047.
Did you know?
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This creates opportunities and benefits for Financial Advisers to:
1. Support existing clients: Deliver more value 2. Acquire new clients: Gain direct access to new potential clients in need of financial advice
The opportunity
Business opportunities | for financial advisers
Case study
A law firm quoted to administer the estate for a fee of 2.5% of the estate value - £72,500 The Adviser provided their quote – £11,525 The Adviser was introduced to the beneficiaries from the estate
The client died in March 2017. The estate was worth £2.9 million The client’s Adviser introduced their EA service to the Executor
with the benefits of the service she received via her late Uncle’s financial adviser
delighted that their inheritance was protected as much as possible
delighted to have helped his late clients family, whilst securing a number
process
Business opportunities | for financial advisers
Case study
The estate, worth £300,000, was left in its entirety to Mrs B Mrs B used some of the money to pay off her
For the remainder the Adviser was able to
The Adviser took her on as a new client with
to invest The clients mother- in-law, passed away. Mr P was the sole Executor His Adviser had previously introduced their EA service and the benefits it provided It was clear to Mr P that he would turn to his Adviser when the time came
all the work and hassle
was taken away from him
delighted that their inheritance was protected as much as possible
delighted to have helped his client, whilst securing a valuable new client in the process
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Conclusions
The inheritance economy is driven by three key factors Probate sits within Financial Services Financial services need to be prepared, and act
Business opportunities | for Financial Advisers
If one of your clients parents passed away, would they call you? If one of your clients passed away would their children or spouse call you? Do you know how many of your clients are named as an Executor in another persons Will?
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Thanks & any questions?
Rachael Maskell
Regional Sales Manager Rachael.maskell@kctrust.co.uk
We’re Kings Court Trust…
Business opportunities | for financial advisers
Business opportunities | for financial advisers
In the unfortunate event of someone’s death, we’re trusted to simply…….
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Helping families to move on
What exactly does this mean?
‘take complete care of their affairs’
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It’s an excellent service and we have helped thousands of families to move on. We hope to help thousands more.
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Don’t wait, get in touch…….
www.partnergrowth.kctrust.co.uk 0300 303 9000 info@partnergrowth.kctrust.co.uk