Advisers should be readying themselves for a boom in demand for inheritance tax planning advice, according to new research from The Openwork Partnership.
Nearly two in five (38%) advisers saw an increase in demand from clients for advice on IHT over the last 12 months and three fifths (60%) expect demand to continue rising in the year ahead.
More than one in 10 (11%) of advisers’ client base is actively seeking advice on IHT.
Advisers cited growing awareness of the impact of IHT (56%) as the leading driver behind the increased demand, followed by advisers proactively discussing it with their clients (47%) and rising property prices (43%).
In addition, pensions being more attractive as a way of passing on wealth (41%) and Covid-19 raising interest in financial reviews (25%) were also key reasons behind the demand.
While the average age of clients seeking advice from IHT is 62, a quarter (25%) of advisers have seen an increase in the number of families visiting them for advice in the last 12 months.
Mike Morrow, chief commercial officer at The Openwork Partnership, said: “Inheritance tax has so many different elements to it, it can often be overwhelming and difficult to know what the best options are for you.
“The Covid-19 pandemic has encouraged many to reassess their finances and ensure everything is as it should be. It’s good to see more people enlisting the help of a professional and parents bringing their family along to start the adviser process early.”