Intergenerational wealth management is about how families use their collective wealth to support each other during their lifetimes.
Increasing life expectancy and social change mean many families need to reconsider how their wealth can work harder for the benefit of the whole family.
Traditionally, wealth has passed from one generation to the next upon death.
However, intergenerational wealth management looks at how families can use their wealth more collaboratively during their lifetimes.
We can assist with many of your family’s wealth objectives - including funding an education, investment and later life planning, getting on the property ladder, and inheritance tax planning.
We also provide financial education for the under 30s, through the START website and Instagram page.
START is a helpful source of personal finance tips and information. All of START’s contributors are under 30s, faced with the same everyday dilemmas; whether that be student loan repayments, choosing the right mortgage, or finding a way to save a bit of money every month.
Please note that borrowing against investments is subject to eligibility and for a short term basis.
If the value of the investment falls, in relation to the agreed loan facility, the loan may need to be repaid in full.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Intergenerational insurance policies offer much in terms of delivering the reassurance that everyone in the family is, or can be covered.
In conjunction with WPA, St. James's Place have developed a unique and exclusive, generation spanning, Family Healthcare Plan. The plan helps to protect your health and – if required – the health of your whole (extended) family. This can provide you with peace of mind for your children, grandchildren, parents and other loved ones.
The Family Insurance Plan, provided in conjunction with Stackhouse Poland, is, we believe, the UK’s first intergenerational general insurance policy designed to meet the needs of the entire family. Offering comprehensive cover designed to cover the majority, if not all, of your general insurance requirements.
Download our brochure for more information.
The difficulties facing younger people in joining the ranks of homeownership are well-reported, with renting often now stretching well into one’s thirties or beyond. Consequently, an increasing number of parents and grandparents are stepping in to help children onto the housing ladder.
There are a number of ways to do this...
Gifting, loans and providing security to mortgage providers are all worth consideration, and many of these solutions have the dual-advantage of helping with effective estate planning. However, caution - and advice - needs to be taken when considering which option to take to ensure that no unexpected tax liabilities result from this act of generosity.
For more information, download the Intergenerational Mortgages brochure.
The home on which the mortgage is secured may be repossessed if payments are not kept up to date.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Supporting your children by setting aside funds from their early years means that even modest amounts invested on a regular basis will benefit from the effects of compounding. By the time your child reaches 18, this could mean that they have a substantial fund to assist with university, or a generous pot building for their first house deposit. From an estate planning perspective, using gifting allowances to fund their investments means that parents and grandparents could benefit from the transfer of wealth as well, without any Capital Gains or Income Tax penalties.
More information about Junior ISAs is available here.
The concepts and appropriateness of using Gifts and Trusts* are best understood in the context of your own personal circumstances.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and can fall as well as rise. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.
*Trusts are not regulated by the Financial Conduct Authority.
When it comes to providing for successive generations, the protection of accumulated wealth becomes important, including the effects of Inheritance Tax (IHT).
Given the surge in property values in recent years, IHT is no longer just a tax on the wealthy.
In addition, protecting wealth includes being prepared for unexpected life events such as divorce, bankruptcy, and long term care, that could leave your chosen beneficiaries feeling vulnerable and unable to look after funds themselves.
Retaining and protecting the wealth that you have worked hard to create, requires vision along with well thought out trust* and estate planning.
If you are self-employed, intergenerational wealth management planning should also extend to the future aspirations for your business.
Succession planning is crucial for business owners who are looking to secure the continued success of their enterprise, and perhaps realise the value they have built up over the years.
Additionally, a robust protection plan and an appropriately drafted Will# can help in the event of the untimely death or critical illness of the business owner, and the impact on the family at an already upsetting time.
Whatever your aspirations, by starting the conversation about succession early, the future direction of the business can be defined and planned.
#Will writing involves the referral to a service that is separate and distinct to those offered by St. James's Place. Wills are not regulated by the Financial Conduct Authority.
St. James's Place guarantees the suitability of the advice given by members of the St. James's Place Partnership when recommending any of the wealth management products and services available from companies in the group, more details of which are set out on the Group's website.