Wealth managers must offer a wider range of inheritance tax planning options to clients, says Key Partnerships.
The referral arm of Key Group said the ongoing strong performance of key equity markets and record inflows to investment platforms means clients aged 55 and over may have an increasing need for IHT planning support.
It is estimated that more than four million over-55s are regular investors, with nearly half of those aged 55 to 64 believed to hold ISAs, rising to 50% of those aged 65 plus.
The latest government data shows that IHT receipts continue to rise, hitting a record £8.7 billion in the 2025/26 tax year and forecast to reach £14.5 billion by the 2030/31 tax year following the inclusion of unused pensions in estates from next April.
Damon O’Connell, director at Key Partnerships, said: “Clients are increasingly looking for IHT and estate planning advice and the strength of equity markets allied to record inflows to investment platforms indicate that many will need support.
“Wealth advisers are ideally placed to support clients and with more than four million over-55s investing regularly there is also a significant opportunity to deepen client relationships and provide additional value.”
According to Key Partnerships, the use of later life lending products such as lifetime mortgages is becoming more important but the firm expressed concern that wealth advisers may be unaware of potential benefits.
O’Connell added: “The concern is that wealth advisers will stick to their area of expertise and not offer access to other relevant IHT planning options such as later life lending as they do not have the qualifications or expertise to advise on them.
“Modern lifetime mortgages and other later life lending products should be considered as part of the mix so that clients receive holistic advice.
“Strong referral partnerships with later life lending specialists ensure clients receive independent whole of market advice which can help deliver good customer outcomes whether they go ahead or not.”
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