Arken Legal’s latest survey, titled “Are Today’s Processes Fit for Tomorrow’s Clients,” has found that a gap exists between professional estate planners and the beneficiaries who are set to inherit substantial sums of money. According to the survey, only 23% of estate planners have a direct relationship with their client’s beneficiaries, even though they are likely to inherit hundreds of thousands of pounds.
The findings uncovered that over 65% of beneficiaries were set to inherit over £200,000 and almost a third can expect to inherit £400-£500k.
According to the Institute for Fiscal Studies, the majority of those who will inherit are Millennials – those born between 1981 and 1996. They are set to benefit from their parent’s property value growth and final salary pensions and will become one of the wealthiest generations to exist in history.
Arken Legal’s survey also found that nearly half of these Millennial beneficiaries have begun incorporating this inheritance into their lifetime financial planning, indicating that these funds are becoming increasingly important to their future goals.
Yet, despite their reliance and plans for this inheritance, over half of respondents felt their clients were worried about how their beneficiaries would manage this money. Implying a mismatch in ideas around financial responsibility and effective money management. David Newick, CEO at Arken Legal commented:
“The role of the advisor has always been crucial in helping to protect family legacies, but the magnitude of these inheritances and their importance to people’s life goals has elevated its importance. Our findings also suggest that estate planning might be becoming more of a family affair, returning to the traditional ‘family lawyer’ days. Considering the size of the Great Wealth Transfer and the amount of money at risk, enabling a family wealth conversation makes sense for the well-being of all parties involved.”
For more information about the survey and its findings, please contact Bethany Crease using info@arken.legal.
This article was submitted to be published by Arken.legal as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
