A rising number of clients are concerned about intergenerational planning amid changes to inheritance tax, a new report by HSBC Life (UK) has revealed.
The report, The Three I’s of Investable Capital 2025, show 80% of clients are now concerned about intergenerational planning, up from 75% in 2022. Nearly two in five (39%) describe it as highly important, compared with 34% previously.
Advisers say changes in last year’s Autumn Budget have made them more likely to consider trust-based solutions for inheritance tax planning, with 79% stating they are more likely to consider trusts as a direct result.
HSBC Life (UK) believes there should be more conversations with clients around inheritance tax, amid rising inheritance tax receipts. Recent government figures show a record £8.2 billion was paid in IHT in the year from April 2024 to March 2025, up £800 million on the previous year, with the figure expected to continue rising.
However, while 68% of clients have discussed IHT planning with their adviser, less than half (47%) have solutions in place to reduce or plan for potential IHT on their estate.
More than two out of five (42%) admit they have not taken action and a further 11% are unsure if they should. Meanwhile, nearly a third (29%) of clients say their adviser has raised IHT planning with them but they have not taken action.
The report showed almost all (98%) advisers questioned believe that taking an intergenerational approach to planning is important to clients but estimate that 38% of clients who should be planning for IHT are not.
Mark Lambert, head of onshore bond distribution at HSBC Life (UK) Limited, said: “It has never been more important for advisers to actively engage clients and their dependents on intergenerational wealth transfers.
“Record IHT receipts, and demand from clients for support, clearly makes the case for advisers to redouble efforts on estate planning. As part of this, we believe advisers will be seriously considering making the fullest use of the relevant tax effective wrappers available, including onshore bonds.
“Combined with an appropriate trust, onshore bonds can form part of a highly tax efficient estate planning strategy with simplified tax administration.”
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