Wealth Preservation for the Next Generation
Transferring wealth to the next generation is about more than just passing down money; it’s about preserving family values, maintaining financial security and preventing wealth erosion. Our experts can assist you with careful planning to help ensure that your hard-earned assets are managed wisely and sustainably by future generations.
Challenges in Wealth Preservation
Tax Liabilities: Inheritance Tax and Capital Gains Tax (CGT) can significantly reduce the value of your estate. Inheritance Tax is currently 40% on your estate above your Nil Rate Band this threshold of £325,000 (or £500,000 if it includes a residence left to a direct descendant) is currently frozen until 2030.
Family Dynamics: Differing priorities among family members can lead to conflicts.
Economic Risks: Inflation and market volatility may erode long-term wealth.
Building a Wealth Preservation Plan
Set Clear Objectives: Decide how you want your wealth to be used, whether it’s for supporting family, philanthropy or reinvestment.
Use Trusts*: Trusts can help protect assets from creditors, reduce tax liabilities and provide structured disbursement to beneficiaries.
Lifetime Gifting: Making gifts during your lifetime reduces the taxable estate and allows you to witness the impact of your generosity.
Diversify Investments: A well-balanced portfolio can mitigate risks and preserve purchasing power over time.
Educating the Next Generation
One of the biggest threats to wealth preservation is a lack of financial knowledge. Educating your heirs about investments, budgeting, and estate planning ensures they are prepared to manage their inheritance responsibly.
The Role of Professional Advice
Wealth preservation requires a holistic approach. From setting up trusts to optimizing your investment strategy, professional advisers can help craft a plan tailored to your family’s needs.
Get in Touch
Wealth preservation is as much about family harmony as it is about financial strategy. With the right plan in place, you can ensure that your legacy benefits future generations while staying true to your values. Contact us today to speak to one of our experts.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount 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.
SJP Approved 04/12/2024
