New research from Quilter Cheviot has highlighted the growing importance of involving the entire family unit in the wealth transfer process.
The research, carried out in partnership with the lang cat, found 17% of advisers always include family members when advising, while 77% suggest involving the wider family but leave the final decision to the client.
Despite this, a recent YouGov survey found that a third (32%) of those who paid for specialist advice in the last two years reported that their adviser did not involve their spouse or family in the process.
Quilter Cheviot said advisers are also divided on how to charge for advising additional family members. While a third (32%) of advisers treat wider family members as separate individual clients and charge accordingly, 33% opt to charge the family as a single entity and 17% charge the wider family separately but at a lower rate than the main client.
However, two thirds (66%) of people who have received advice expect an adviser to provide advice to their spouse and family as part of the service and 42% of those who involve family expect the adviser to start involving them immediately at no extra cost.
Only one in 10 (11%) clients would not want their family to continue receiving advice from their adviser.
David Denton, head of technical at Quilter Cheviot, said: “In the face of the great wealth transfer, it is imperative for financial planners to adopt a comprehensive and inclusive approach that involves the entire family unit. Our research highlights that while many advisers are making strides in this direction, there is still room for improvement.
“By ensuring that spouses and family members are actively included in the financial planning process, we can better meet the expectations of our clients and facilitate a smoother transition of wealth across generations. This holistic approach not only strengthens family financial security but also builds lasting trust and relationships with clients.”
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