New research has shown that financial advisers are expecting a boom in demand for advice about inheritance tax (IHT) planning.

The financial advice company The Open Partnership said that nearly two out of five (38 percent) advisers saw an increase in demand from clients for advice on IHT planning in the past year. In addition, advisers anticipate the boom will continue going forward as 60 percent of those surveyed expect the demand to rise in the year ahead, with 19 percent saying they think it will increase significantly.

More than one in 10 (11 percent) of the average adviser’s client base is actively seeking advice on IHT.

Top five reasons for increase in demand

The research reveals the top five reasons for the increase in those seeking advice on inheritance planning:

• greater awareness of the impact of IHT (56 percent)
• advisers proactively discussing it with their clients (47 percent)
• the rise in property prices (43 percent)
• pensions being more attractive as a way of passing on wealth (41 percent)
• Covid-19 increasing the interest in financial reviews (25 percent)

The average age people seek IHT advice from a professional is 62-years old – however, a quarter (25 percent) of advisers have seen an increase in the number of families visiting them for advice in the last 12 months.

Mike Morrow, Chief Commercial Officer at The Openwork Partnership, said: “Inheritance tax has so many different elements to it, it can often be overwhelming and difficult to know what the best options are for you.

“The Covid-19 pandemic has encouraged many to reassess their finances and ensure everything is as it should be. It’s good to see more people enlisting the help of a professional and parents bringing their family along to start the adviser process early.”

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