New research from Prudential shows that financial advisers are bracing for a significant increase in demand for inheritance tax (IHT) advice over the coming year.
According to the study, 69% of advisers expect demand for IHT planning to grow within the next 12 months, with 37% predicting a substantial surge.
A Gap in Confidence and the Need for Legal Partnerships
While demand is expected to rise sharply, 17% of advisers admit they are not fully confident in giving detailed IHT advice due to recent regulatory changes. Many are looking to partner with legal firms and specialist advisers to ensure clients receive accurate, comprehensive planning.
If you are a financial adviser seeking a trusted legal partner for IHT and estate planning support, our specialist solicitors can work with you to protect your clients’ wealth.
What’s Driving the Increase in Demand?
Nearly 60% of advisers attribute the rise in interest to new IHT rules introduced in April. These changes include:
Residence Nil-Rate Band (RNRB) – An additional £100,000 per person allowance for passing on the family home to direct descendants.
Annual increases in the RNRB until it reaches £175,000 per person in 2020/21.
When combined with the standard nil-rate band of £325,000 per person, a couple could potentially pass on up to £1 million free of IHT from 2020/21.
Other Key Drivers of IHT Advice Growth
Pension Freedoms – Greater flexibility in accessing pension savings and the ability to leave unused pension wealth to family members.
Rising property prices – More estates are breaching the IHT threshold, particularly in high-value housing areas.
Trusts for IHT planning – Over 52% of advisers have seen an increase in client enquiries about using trusts to manage IHT liabilities.
Expert View
“Rising property and pension wealth are making it increasingly important for advisers to help clients with specialist advice on IHT planning, and demand is booming,” said Paul Harrison, Head of Business Consultancy at Prudential.
“One specialist area that is driving demand is the use of trusts – more than half of advisers report increased enquiries about trusts for IHT planning.”
Why Early Planning Matters
Inheritance tax planning is most effective when started early. This ensures clients can make full use of allowances, exemptions, and trusts, while reducing the risk of unexpected tax liabilities for their heirs.
Our experienced inheritance planning solicitors work closely with individuals, families, and financial advisers to create bespoke strategies that safeguard wealth for future generations.
Contact Us
For expert legal advice on inheritance planning, IHT rules, and trusts, contact our specialist solicitors today.
Call us or complete our online enquiry form to arrange a confidential consultation.
