Protecting and Cascading Wealth Through the Generations

One area where the BROADSTONE Private Office has been advising a number of families recently is the area of succession planning.

 

The UK tax regime has consistently encouraged planning for Inheritance Tax but rarely is much thought given to the consequences of cascading wealth to the next generation.  In this blog I’d like to give you some ideas on what to consider. 

One of the key components to a successful succession plan is preparing the next generation to the consequences of wealth inheritance.  If assets are passed without clear thought and education, the recipients are often stressed by the responsibility or become care free about their own life aspirations.   I have seen a number of situations where poor planning has proven the Lancashire proverb of “clogs to clogs in three generations”* - an aphorism based on the observation that it takes one generation to found a business, the next to build it, and the third to spend it.

The obvious place to start a planning conversation is wills and their effectiveness in the event of an untimely death.  In addition pre-nuptial and post-nuptial agreements are now receiving more favourable consideration by the courts and so should always be discussed with older children. We have a financial education programme where we discuss these in more depth with families.

Another important point to remember is that plans must be reviewed on an ongoing basis.

Like all good financial planning the subject of inheritance starts with a conversation with advisers. If you are interested in taking the first steps, please do give me a call.  Our team would be delighted to provide further information or introduce the appropriate adviser.


Mike Batchelor
Private Office

Telephone:  +44 (0)20 7893 3456
Email:  getintouch[@]broadstoneltd.co.uk

* Dryden's Fables Ancient and Modern (1700), ‘Seldom three descents continue good.’