Exploring Intergenerational Wealth Management

Intergenerational wealth management is about how families use their collective wealth to support each other during their lifetimes.

Increasing life expectancy and major 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 challenges that notion and looks at how families can use their wealth more collaboratively to support each other during their lifetimes.

Please do get in touch if you are considering how best to financially support a loved one. We can assist with many of your family wealth objectives - including funding an education, investment planning, later life planning, getting on the property ladder, inheritance tax planning, and even following a career vocation in life.

We also provide financial education, written by and created for under 30s, through the START website and Instagram page. START is a helpful source of personal finance tips and information and all of START’s contributors are under 30s who work at St. James’s Place, 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. Follow on Instagram for the latest content.

Please click here to view the START website.
Please click here to view the START Instagram.

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.

Protection for the whole family

Protection for the whole family

Intergenerational insurance policies offer much in terms of delivering the reassurance that everyone in the family is, or can be covered.

Family Healthcare Plan

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.

Family Insurance Plan

The Family Insurance Plan, provided in conjunction with Gallagher, 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, please get in touch if you would like to find out how this innovative product may be appropriate for your family.

Helping loved ones onto the property ladder

Helping loved ones onto the property ladder

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, visit our First-Time Buyers page or download our Guide for First-Time Buyers and 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.

Investing for a better future for your children

Investing for a better future for your children

Supporting your children onto the housing ladder is undoubtedly a very generous act, but starting an investment plan from a very young age has even more added advantages. Setting aside funds from the early years means that even modest amounts invested on a regular basis will benefit from the effects of compounding, and reduce the risk of investing more significant amounts at the wrong time or during periods of market volatility.

By the time your child reaches 18, this could mean that they have a substantial fund to assist with university life or a generous pot building for their first house deposit.

Of course, from an estate planning perspective, by using gifting allowances to fund the investments – currently, an individual can gift a lump sum of up to £3,000 per year, and unlimited gifts of £250 per year – parents and grandparents, indeed anyone could benefit from the transfer of wealth 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. If you would like to understand more about how they can help with your own estate planning needs, please do not hesitate to contact us.

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.

Protection for the whole family

Intergenerational insurance policies offer much in terms of delivering the reassurance that everyone in the family is, or can be covered.

Family Healthcare Plan

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.

Family Insurance Plan

The Family Insurance Plan, provided in conjunction with Gallagher, 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, please get in touch if you would like to find out how this innovative product may be appropriate for your family.

Helping loved ones onto the property ladder

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, visit our First-Time Buyers page or download our Guide for First-Time Buyers and 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.

Investing for a better future for your children

Supporting your children onto the housing ladder is undoubtedly a very generous act, but starting an investment plan from a very young age has even more added advantages. Setting aside funds from the early years means that even modest amounts invested on a regular basis will benefit from the effects of compounding, and reduce the risk of investing more significant amounts at the wrong time or during periods of market volatility.

By the time your child reaches 18, this could mean that they have a substantial fund to assist with university life or a generous pot building for their first house deposit.

Of course, from an estate planning perspective, by using gifting allowances to fund the investments – currently, an individual can gift a lump sum of up to £3,000 per year, and unlimited gifts of £250 per year – parents and grandparents, indeed anyone could benefit from the transfer of wealth 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. If you would like to understand more about how they can help with your own estate planning needs, please do not hesitate to contact us.

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.

Futureproofing your wealth – the importance of estate planning

Futureproofing your wealth – the importance of estate planning

The creation and retention of wealth are goals many of us aspire to. However, when our objectives change and it comes to providing for successive generations, it is the protection of accumulated wealth which becomes important, including the effects of Inheritance Tax (IHT).

IHT is charged at 40% on all assets above an allowance known as the nil rate band (NRB), currently set at £325,000. The NRB can be up to £650,000 for married couples and registered civil partners where the exemption is not used on first death. And given the surge in property values in recent years, it is clear that what was once a tax on the wealthy, is now falling on people of less expansive means. As a result, the phased introduction of the residence nil rate band (RNRB), from April 2017, was a much welcomed addition for those who meet the criteria.

Wealth also needs to be protected from a plethora of outside ‘events’, many of which may lead to your chosen beneficiaries being unable, unwilling or insufficiently responsible to look after funds themselves. This includes generations not yet born, those who may be at risk of divorce or bankruptcy and those liable to the expense of long term care provision/costs.

There are three practical courses of action that may be taken to preserve and enhance your wealth for your heirs:

  • Make sure your financial affairs and your Will are arranged to allow the tax efficient transfer of your assets on death.
  • Transfer assets before your death through the prudent use of lifetime gifts.
  • Create a tax efficient fund to provide a legacy or to enable the beneficiaries of your estate to meet any IHT liability.

To create wealth takes enterprise, vision and usually a mixture of hard work and good fortune. To retain and protect wealth also requires vision along with well thought out trust and estate planning.

Please contact us if you wish to discuss your personal situation.

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.

Advice relating to a Will 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.

Safeguarding your business’s future

Safeguarding your business’s future

If you are self-employed, intergenerational wealth management planning should also extend to the future aspirations for your business. In the past, once an entrepreneur had built a business, they could be confident that their children, nieces or nephews would be willing and able to take the reins, but times have changed.

For owners of a successful family business, there may be an emotional investment in the continuing success of the enterprise, or conversely, they may wish to realise the value they have built up over the years, and look for a buyer.

Another consideration in business succession planning is the future of the enterprise in the event of the untimely death or critical illness of the owner. This, of course, can lead to unexpected or undesirable consequences for those left behind; therefore, a robust protection plan and an appropriately drafted Will* can help avoid any unnecessary fall-out 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. Please do get in touch if you would like to discuss your circumstances in more detail.

*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.

Futureproofing your wealth – the importance of estate planning

The creation and retention of wealth are goals many of us aspire to. However, when our objectives change and it comes to providing for successive generations, it is the protection of accumulated wealth which becomes important, including the effects of Inheritance Tax (IHT).

IHT is charged at 40% on all assets above an allowance known as the nil rate band (NRB), currently set at £325,000. The NRB can be up to £650,000 for married couples and registered civil partners where the exemption is not used on first death. And given the surge in property values in recent years, it is clear that what was once a tax on the wealthy, is now falling on people of less expansive means. As a result, the phased introduction of the residence nil rate band (RNRB), from April 2017, was a much welcomed addition for those who meet the criteria.

Wealth also needs to be protected from a plethora of outside ‘events’, many of which may lead to your chosen beneficiaries being unable, unwilling or insufficiently responsible to look after funds themselves. This includes generations not yet born, those who may be at risk of divorce or bankruptcy and those liable to the expense of long term care provision/costs.

There are three practical courses of action that may be taken to preserve and enhance your wealth for your heirs:

  • Make sure your financial affairs and your Will are arranged to allow the tax efficient transfer of your assets on death.
  • Transfer assets before your death through the prudent use of lifetime gifts.
  • Create a tax efficient fund to provide a legacy or to enable the beneficiaries of your estate to meet any IHT liability.

To create wealth takes enterprise, vision and usually a mixture of hard work and good fortune. To retain and protect wealth also requires vision along with well thought out trust and estate planning.

Please contact us if you wish to discuss your personal situation.

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.

Advice relating to a Will 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.

Safeguarding your business’s future

If you are self-employed, intergenerational wealth management planning should also extend to the future aspirations for your business. In the past, once an entrepreneur had built a business, they could be confident that their children, nieces or nephews would be willing and able to take the reins, but times have changed.

For owners of a successful family business, there may be an emotional investment in the continuing success of the enterprise, or conversely, they may wish to realise the value they have built up over the years, and look for a buyer.

Another consideration in business succession planning is the future of the enterprise in the event of the untimely death or critical illness of the owner. This, of course, can lead to unexpected or undesirable consequences for those left behind; therefore, a robust protection plan and an appropriately drafted Will* can help avoid any unnecessary fall-out 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. Please do get in touch if you would like to discuss your circumstances in more detail.

*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.

The home on which the mortgage is secured may be repossessed if payments are not kept up to date.

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.