According to research, financial advisors are expected to draw on a range of solutions in order to alleviate possible inheritance tax bills, to benefit their customers.
Image Credit IHT reduction methods The most popular methods adopted to reduce clients’ bills include discounted gift trusts, discretionary gift trusts, a trust protection plan and business property relief. These methods were used by approximately 31 to 36 per cent of financial advisers in the past year. IHT planning has become big business for financial advisers, as the government outlines its inheritance tax rules.
63 per cent of financial advisers view inheritance tax planning as a substantial factor in their business service offering. 36 per cent reportedly believe IHT planning will become even more vital in the coming years. Families that want to pass on their estate to younger generations need to set plans in place. A smart approach would be to give less to your immediate children, to give your capital as much of a chance as possible to enjoy long-term compounding. By determining how much to bequeath to grandchildren and younger family members, the client can discount that figure by the expected growth they hope to achieve in the remaining years, and invest in an Alternative Investment Market IHT product.
Image Credit The demand for solutions The increased demand for professional financial advisers specialising in estate planning and IHT has been driven by many factors, including the increasing value of property and assets, especially in desirable locations such as London and the South East, the utilisation of pensions as a tool for estate planning, an aging population and the changes made to IHT limits. Estate and IHT planning is a growing sector for financial advisers. There is a range of tax efficient options and investment solutions open to financial advisers and their customers. Several can help generate steady income and growth, while alleviating IHT liabilities in a few years. Back office systems for financial advisers can prove useful, such as those found at https://www.intelliflo.com/. Thorough research into IHT planning highlights the vast opportunity available to financial advisers. There are many options for clients who need reliable, sound and sensible IHT planning advice, as well as a range of solutions open to financial advisers to achieve the very best for their clients.