Intergenerational planning might come across as financial services jargon, but if you want to make sure your money benefits other members of your family it’s a term you might want to know more about.

Why is intergenerational planning important?

The difference in wealth between the young and the old has never been more apparent. This ‘wealth gap’ is fuelled by things like the rising cost of renting and home ownership, high university tuition fees and the high cost of living. In contrast, older generations have benefited from generous final salary pensions and big increases in stock and housing markets over the last three decades. This generational disparity is most striking in the housing market, where people aged over 50 own 78 percent of the UK’s total private housing wealth, amounting to a net value of £2.587 trillion.

The over-50s own 78 percent of the UK’s total private housing wealth, a net value of £2.587 trillion

As a result, it’s perhaps natural for grandparents to want to help out younger family members by passing down their wealth. In fact, a study by Imperial College London estimates the current flow of bequests to be around £99 billion per year, plus another £11 billion in private gifts between generations.

Common pitfalls

Family structures are arguably more complex than they used to be though. In cases of divorce and remarriage, cohabitation and stepchildren, assumptions about who you leave your money to and how, could lead to unintended consequences. Without a clear will, there’s a risk of leaving your family with disagreement and lots of upset, rather than a positive legacy.

How Amber River can help

At Amber River, our IFAs work with you to create a comprehensive estate plan, including the use of wills and trusts where necessary. We guide you through the tax implications of gifting while you’re still alive and on your death. Our experts will clarify the process, demystify any jargon, and ensure your money benefits those you intend it to.

Get in touch

To speak to one of our team, arrange an appointment or find out more, call 0800 915 0000, or alternatively use our contact form here.