Why inheritance planning matters
planning and passing on wealth can be a thorny subject for many
families, and family-run businesses in particular.
Succession planning is one area of modern financial
transactions that is often opaque, with many people reluctant to
talk openly about the details of what they will leave behind when
they are gone.
Although being able to provide for the financial needs of
surviving relatives is a special kind of gift, it can also be
extremely challenging, not just because of the technical complexity
of making appropriate arrangements, but also because of the hard
choices about how to divide wealth.
Our Wealth Advisory team - which explains and advises
around the various inheritance options - has seen among our clients
that there are many factors that individuals take into account when
considering succession planning.
These include family expectations, the sacrifices and
contributions that family members have made, and even with whom
they have had better relationships.
We also find that there is a degree of anxiety among
wealthy individuals in passing on their wealth - despite the
age-old adage of "you can't take it with you".
Research published last year by the wealth and investment
management division of Barclays found that when it comes to
succession planning 40 per cent of the UK's high net worth
individuals do not trust their children and stepchildren to protect
Surprisingly, those in the South East are even less likely
to trust their children and stepchildren, even more so than those
43% of South East respondents confirm this lack of trust,
compared to 35% of London respondents. This shows that wealthy
individuals in this region might benefit from careful advice around
Experts have partly attributed this lack of trust in the
future generation to the changing structure of many UK
As second and third marriages become more common, this can
lead to more complex relationships with both children and
stepchildren in relation to wealth and inheritance planning, which
further underlines the importance of seeking advice in these
With wealth comes an increasing complexity of choice, and
this can result in concerns about trust.
Through working closely with our clients' professional
advisers, we stress that understanding in advance the options for
succession planning, and seeking advice from solicitors and
accountants, as well as wealth advisers, can help address these
fears and provide confidence that your wealth will be wisely
managed in the future.
- The brands Barclays Wealth, Capital and Corporate
are now united under the Barclays name.