Start Intergenerational Financial Planning now and Give your Family a Future

Sep 5, 2018 | Savings


Financial times have changed considerably in the last few years. The baby boomer generation that grew up in a time of affordable housing and low education costs has given way to financial uncertainty among the millennial generation. Right now in the UK, the baby boomer generation holds over half of the UK’s wealth. This is scalable across the western world.

Today, instead of looking forward to getting on the property ladder and building a life, many millennials cannot get the money together for a deposit. More often than not, many are faced with educational debts and high rents.

Although bleak there is a solution: Intergenerational financial planning.

Intergenerational financial planning is where family wealth is planned to help the youngest to the oldest. With most UK families wealth is tied up with the older generation many of whom have expressed they would like to see this benefit their children and grandchildren.

Although there are tax issues to be considered and to negotiate these you will need a competent financial planner, the benefits to every generation are profound.

If intergenerational planning is handled correctly, you can facilitate the smooth transfer of your wealth to the younger generations, avoiding inheritance tax issues and other complications that your beneficiaries will encounter when you pass.

Important Aspects of Intergenerational Planning

In essence, there are five main aspects that come into play when intergenerational wealth planning. They are:

  • Tax-efficiency – keeping your wealth out of the hands of the taxman as much as possible
  • Control – how you pass on wealth, who to, and restrictions
  • Timing – timing is an important factor for wealth planning and avoids unforeseen nasty surprises
  • Access – you may pass on your wealth to your child or grandchild, but in an age of rising divorce you do not want to see some of it lost to their former spouses
  • Sustaining your standard of living – You may be passing on your wealth but you do not want to live in poverty either
  • Protection – ensuring that your assets are protected is important for intergenerational wealth planning

Introduce your Family to your Financial Planner

As you start thinking in an intergenerational way you should introduce your financial planner to your family at the earliest opportunity. This way they will be familiar to them when you’re no longer around, and they can answer the questions your family will have. Good financial planners can access the whole of the market products and find the best solutions to help you achieve your financial aims.

Perhaps most importantly, they can avoid the traps such as a child or grandchild divorce that would see half of what you pass on go to a former spouse. Other traps such as paying unnecessary fees can also be avoided by having an astute financial planner.

Your financial planner will be able to advise your beneficiaries about their finances and the importance of taking a responsible approach to saving. They can also talk to them about allowances they are entitled to and advise them on the best way to use their money effectively.

Financial planners are invaluable with intergenerational wealth planning. Did you know for instance pension changes can help significantly with avoiding inheritance tax? Good financial planners do, and will help you pass on as much as your wealth to your beneficiaries.

Get Started with Intergenerational Financial Planning

To get started with intergenerational planning and see you and your beneficiaries have a better quality of life while you are still here; complete the Call Back Service Form. Many clients in their eighties say ‘they would have done this if they’d known’, you don’t need to be one of them. The sooner you start intergenerational financial planning the sooner your whole family benefits and not just financially.

Source: Financial Planning Matters

For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]


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