Intergenerational Wealth

Having intergenerational wealth does not always mean having total confidence in making good financial decisions. 

Recent research commissioned by Quintet and Black Rock this year, looked to understand High Net Worth individuals’ attitudes towards their wealth and outlook for the future. This included plans for passing down wealth and retirement plans. 

 

Of those surveyed, 49% agree they are not always certain whether they have made good financial decisions now and 44% find it stressful making decisions about preserving their wealth. 

Intergenerational wealth refers to the assets passed from one generation to another. In some cases, this is through inheritance and in others, being passed while the doner is still alive. It doesn’t always refer to the next generation either. Often these assets may bypass a generation if for example, the adult child has their own wealth, passing on additional wealth to them may increase their own IHT problems, so passing it onto grandchildren may avoid these hefty tax implications. 

 

The good news is that more than 75% those responding, felt that their wealth was going to increase over the next 5 years. This is notably higher in the UK respondents in comparison to those in Belgium, Germany and the Netherlands and this they attributed to hard work and commitment rather than luck. 

I have mention in previous posts that this is where seeking bespoke advice in this area is vital. The use of trusts can ensure the efficient distribution of assets for many generations, not just your grandchildren, therefore keeping assets in the family as well as preventing significant recurring tax implications. 

 

What a lovely thought that not only would your grandchildren remember you fondly but even their children will remember your name. All due to that trust you set up years ago that paid for their education and even possibly that of their own children! 

 

(Quintet is a private bank based in Luxemburg, serving a client base of wealthy individuals and families, institutional and investment clients across Europe and the UK. 

Black Rock are one of the world’s leading providers of investment, advisory and risk management solutions.)