As a high net worth individual (HNWI), you’ll have very firm ideas about what you want to happen to your wealth when you die.
You understand that tax-efficient estate planning isn’t something to worry about only in later life. Instead, it should be a vital part of your long-term financial planning from the outset.
Your robust plan should allow you to live the lifestyle you want now, cover your future expenditure, and leave a legacy for the next generation. But what happens to your accrued wealth – and your carefully laid plans – then?
The ‘World Wealth Report 2025’ from business strategists Capgemini finds that 81% of children who inherit a parent’s wealth plan to switch advisers within two years.
At HFMC, we think this is a mistake, and one that could be costly. Keep reading to find out why.
1. We can help you think about and communicate your wishes
Back in 2023, Professional Adviser reported that 32% of baby boomers didn’t want to pass their wealth onto someone whose attitude to money differed from theirs.
While this is understandable, it’s also important to acknowledge that money attitudes are bound to differ between generations. Our relationship to money is formed early. And growing up in the post-war decades, for example, compared to today’s world of cryptocurrency and 24/7 access to news and markets, might have led to an understandable gulf between you and your children.
But communication can help to bridge this gap.
Talk to your children (and your whole family) about your long-term financial plans and the legacy you intend to leave, and your rationale for these decisions.
Ensuring everyone is on the same page can help to avoid disputes or misunderstandings and ensure that your children are mentally and emotionally prepared to receive an inheritance.
2. Intergenerational planning keeps you in control
Sitting down with a trusted adviser to formulate a long-term plan puts you in control of your future. But it can provide peace of mind that your money will be in safe hands after you’re gone, too.
You might incorporate trusts, for example, stipulating how and when your money can be used, and by whom. This ensures younger generations will make sensible use of your accumulated wealth and spend, save, or invest it in a way that aligns with your wishes.
And by communicating these wishes well in advance, your offspring will understand the reasons for your choices and hopefully be on board.
With HFMC alongside, you’ll know that your loved ones will be receiving the best advice, aligned to your carefully conceived strategy.
3. Planning early can be tax-efficient, which means you pass on more
Intergenerational planning isn’t just about how you’ll pass on your wealth when you die. One major benefit of starting your estate planning early is that you put tax-efficient strategies in place from the outset.
Giving while living (often referred to as “giving with a warm hand”) can help to lower the value of your estate for Inheritance Tax (IHT) purposes, while benefiting your loved ones, financially and non-financially.
You might take advantage of the “seven-year rule” to give gifts during your lifetime. These gifts are generally IHT-free if you live for a further seven years from the date the gift is made. So-called “potentially exempt transfers (PETs)” usually only become liable for IHT on death within these seven years and on a sliding scale known as “taper relief”.
We wrote about this more extensively in our spring 2025 article, ‘How to manage complex life insurance and estate planning as a HNWI’, in which we also touched upon other tax-efficient strategies you might consider.
4. Giving with a warm hand means you can provide ongoing guidance
There are other important benefits to giving with a warm hand.
You’ll still be around to see the difference your money makes to your children and grandchildren. What’s more, you might find yourself passing your money on at a time when your beneficiaries need it most.
Your children could receive an inheritance when they’re buying a first home or starting a family, for example. And you’ll be there to make memories with them and offer guidance based on the money lessons you’ve learned throughout your life and career.
5. A consistent message means your legacy is in safe hands
Our ongoing relationship with you means that we understand your goals and aspirations as well as your financial position. We’ve helped you to formulate your plan and continue to work alongside you to ensure your money delivers.
That puts us in the best possible position to continue to manage your money as it changes hands, and to look after your family as we have looked after you.
Get in touch
A consistent voice, delivered through a cohesive intergenerational plan, can make a significant difference to the financial outcomes for you and your family.
We can help you leave a tax-efficient legacy, with peace of mind that your wealth is in safe hands. To find out how, please get in touch.
Contact us online or call 020 7400 4700.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.
