Rethinking legacy: Fresh ideas for a changing landscape
Legacy planning has long been central to clients’ financial aspirations. But the world around those aspirations is changing rapidly, presenting a powerful opportunity for advisers.
With the Inheritance Tax (IHT) landscape evolving and pensions soon to fall within the scope of estate calculations, many long-held assumptions may no longer hold true. Rising property values and the growing complexity of family structures also mean that legacy plans created even a few years ago may fail to deliver their intended outcomes.
Many clients believe they’ve already done the right things – built up pension pots, paid down debt and accumulated savings. Yet today’s retirees face a very different set of pressures compared with previous generations. The “sandwich generation” is now a common reality – supporting parents with growing care needs while helping adult children still living at home or struggling to buy their first property.
Why traditional legacy thinking falls short
Demographic shifts are reshaping the future of retirement and inheritance. People are marrying later, having fewer children and living alone for longer. This creates new complexities in care planning and raises questions about who is available – or willing – to inherit and support decisions later in life.
Alongside this, the financial picture is evolving. Mortgages stretching into retirement are becoming the norm, which affects how property wealth can be accessed or passed on. Clients approaching later life are also experiencing a mindset shift from wealth accumulation to income sustainability, care planning and intergenerational support.
Against this backdrop, leaving legacy planning too late can lead to costly and emotionally challenging outcomes. Unprotected plans can quickly unravel due to illness or income shock; the underuse of trusts continues to cause probate delays; and vital intergenerational conversations often never take place. Too often, advisers only meet beneficiaries after a client’s death, at a point when options are limited and the emotional burden is high.
Helping clients take control – while there’s still time
This environment presents advisers with a powerful opportunity. Clients need help revisiting their legacy strategies in light of today’s realities. That may involve rethinking the role of pensions in potential IHT liability, exploring earlier gifting or integrating solutions such as later life mortgages, annuities and protection to create a more robust and flexible plan.
Trusts, wills and family engagement remain critical. Encouraging clients to involve children, parents or wider family members in discussions ensures clarity and confidence for future generations.
A well-designed legacy is more than money – it’s the gift of stability, understanding and choice. Helping clients rethink their legacy today ensures their intentions don’t become tomorrow’s problems.