Brett Shaw
6 in 10 professional advisers report increased demand for estate and tax planning advice and anticipate growth in legacy giving
- 92% of professional advisers say that estate and tax planning will become even more important following the Inheritance Tax (IHT) changes announced in the 2024 Autumn Statement;
- 60% say they are already receiving more requests for advice;
- 65% say charitable tax incentives will become even more important to their client base; and
- 62% think more people will consider leaving a gift to charity.
Upcoming Inheritance Tax (IHT) changes are already beginning to influence the charitable Will-writing and estates market, with professional advisers reporting an increase in demand for estate planning advice and predicting a rise in charitable legacy giving, according to new research from Remember A Charity*.
The changing IHT landscape
In the Autumn Budget 2024, the Chancellor announced that IHT thresholds would remain frozen until 2030, with pension wealth no longer exempt from IHT from April 2027. As such, it’s estimated that the proportion of estates facing an IHT bill will almost double by 2030**.
Released today, Remember A Charity’s Professional Adviser Tracking Study – carried out by Savanta – reveals that 60% of professional advisers (solicitors, Will-writers and financial advisers) are reporting an increase in requests for advice about estate or inheritance planning since the IHT changes were announced. 9 in 10 advisers expect estate and tax planning to become more important under the IHT changes (92%), and that more people will need to consider how to mitigate the tax due (91%). Only 15% think there will be no discernible impact from the changes.
As more estates fall within the scope of IHT, two thirds of advisers believe that the charitable tax incentives will become an even more important consideration for their clients (65%), and that a greater number of people will consider leaving a gift to charity from their estate (62%). Charitable gifts are exempt from IHT and estates that donate 10% or more of the net value can qualify for the reduced IHT rate of 36%.
Tanya Watson, Chartered Tax Adviser and Senior Director at Alvarez & Marsal Tax LLP, says:
“The changes to IHT are prompting a fundamental reassessment of estate planning strategies, particularly among clients who may not have previously been impacted. What we’re seeing is a growing need for tailored advice that balances financial objectives with personal values. Charitable giving can be a highly effective planning tool, and these changes provide a timely reason for advisers to revisit legacy plans with clients who may not have considered this route before.”
Eleanor Evans TEP, Partner, Trusts and Estates Administration at Hugh James, says:
“We’re already seeing an increase in clients seeking early advice on estate planning. Many people choose to leave legacies to benefit a cause they care about, and the tax breaks for gifts to charity provide an added incentive. As more estates will become liable for IHT once the changes take effect, charitable giving is becoming an increasingly important part of the estate planning conversation.”
Advisers communicating charitable giving more actively
When it comes to Will-writing, over two thirds (77%) of solicitors and Will-writers now say they always or sometimes proactively raise the charitable option with clients (up from 72% in 2023). Charitable gifts are becoming more prevalent over time, with an average of 21% of Wills written through a solicitor or Will-writer now including a donation. This rises to 24% amongst those who always reference charitable legacies with clients and falls to 14% of those who never do.
Tax incentives are the most prevalent reason advisers give for raising the topic of legacy giving with clients. 92% of solicitors and Will-writers and 86% of financial advisers in the study say they always or sometimes advise their Will-writing clients of the charitable tax incentives.
Lucinda Frostick, Director of Remember A Charity – the consortium of UK charities working to grow the legacy giving market, explains:
“Across the advisory spectrum, we’re seeing more advisers referencing the option of charitable giving when talking to clients about their estate and inheritance planning. While the reasons for giving extend far beyond tax incentives, the fiscal framework forms a natural starting point and these IHT changes make the legacy conversation even more relevant to a wider group. This is helping to build understanding of legacy giving and to inspire more people to support the good causes they care about – alongside their loved ones – from their estate.”
Remember A Charity works with professional advisers, legal partners, regulators, trade bodies and government to build awareness about legacy giving. Find out more at www.rememberacharity.org.uk/advisers.
A summary report of the findings is available here.
For further information please contact:
Gina Hollands, Turner PR gina@turnerpr.co.uk 07801 258392