The majority of wealthy women, including those expecting inheritance in the future, are largely unprepared for the substantial transfer of wealth that is expected to take place in the coming decades, according to a recent report by UBS[1]. Given their longer life expectancies, many women are expected to experience two major inheritance events in their lifetime, first from parents and later from their spouse.
Wealth management is becoming increasingly important as the largest ever transfer of wealth from one generation to another is expected to occur in the next 30 years, with somewhere in the region of £5.5tn-£7tn passing on in the UK[2]. In light of this, inheritance planning is changing, moving away from being largely the preserve of a select few ultra-high-net-worth individuals to being increasingly valuable for large swathes of the population.
Rising property prices, asset price inflation and frozen tax thresholds mean that more and more people are being dragged into paying inheritance tax (IHT), with HMRC receipts reaching £7bn between April 2024 and January 2025[3]. Given that even though this figure is large, it represents less than 1% of total tax revenues and was levied on only 4% of the population, a chancellor looking to shore up public finances may find IHT an appealing target.
Growing and preserving intergenerational wealth has been challenging, according to history. At Quilter Cheviot we recognise that discussions with loved ones around death and legacy can be difficult, but we believe it is much easier to talk about it when you are in a stable position in your life. Managing finances and investing are often emotive, so it is far from ideal to make big decisions when you’re going through emotional distress linked to sickness or bereavement. Even high-level discussions with practical steps of who to contact if you become incapacitated can make the process far less painful.
We help our clients look at various ways they could reduce their IHT liability, pass on as much wealth as possible to loved ones, and structure their family wealth to suit their own needs and circumstances.