Almost two thirds (63%) of advisers have encountered family disputes while assisting with inheritance tax planning, according to new research from Downing.
The investment manager’s study among advisers and wealth managers found family disputes are more likely during IHT planning than when estates are settled, with just 26% reporting family tensions over estates.
However, only one in 10 (11%) advisers said they had never experienced family disputes, either over IHT planning or estate related.
The vast majority of advisers prefer to involve family members in IHT planning, Downing said, with 30% stating that they always ensure family members are involved when clients initially contact them about IHT planning and a further 58% saying they usually do. Additionally, 10% say their first meeting is with the client before involving other family members.
In stark contrast, just 2% say their policy is to exclusively communicate with the client.
The study also found that most wealth managers and advisers regard involving clients’ families in IHT planning as beneficial to their business, with three quarters (74%) believing that it is an important part of growing their business. Nearly a quarter (23%) agree that involving family is beneficial to their business, but it is not the only reason they do so.
Mark Dunn, head of retail sales at Downing, said the experience of advisers reflects the emotive nature of inheritance amongst families.
He said: “It is striking that advisers see more family disputes during IHT planning rather than over estate settlement, possibly demonstrating the wisdom of involving families from the start.
“It is also generally good for adviser businesses to involve family members in IHT planning as it introduces the adviser to the next generation which could help make them a client in the future.”
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