Advisers missing out on intergenerational wealth transfer

By Justin Cash

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Jan 31, 2019
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Advisers are missing out on a siginficant amount of business by not ensuring they continue financial planning for clients’ beneficiaries, a new report suggests.

Research into the opportunities advisers have to cash in on intergenerational wealth transfer by Octopus Investments indicates that most advisers have an existing advisory relationship with just 20 per cent of a client’s beneficiaries.

While just over half said they were working on these relationships, 22 per cent said they didn’t know who the beneficiaries are, and 39 per cent said it was not something that was discussed with clients.

In the survey of 202 planners, a third said they found conversations about continuing to advise beneficiaries difficult.

Octopus managing director Paul Latham says: “It’s well-known that we don’t like to talk to our families about death, and it can feel even harder in a professional context. Yet in our experience, the conversation is nowhere near as bad as people expect. Most clients tend to understand the obvious benefits for their children or grandchildren and are often relieved if someone brings it up first.

“The benefits for the both advisers and beneficiaries in maintaining the relationship are clear. The adviser is able to retain the assets under advice and add to their client base, but more importantly, beneficiaries receive invaluable advice on the assets being left to them.

“The loss of loved ones is often an incredibly difficult and stressful time, never mind the added worry of any financial implications. For the beneficiaries it can therefore be enormously helpful to have an understanding of what is likely to happen well in advance.”

Last year, Octopus announced the launch of Octopus Wealth, a restricted advice business to target new-to-advice customers.

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John 6 months ago

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John 6 months ago