Inheritance issues are primary driver for seeking financial advice


Inheritance tax (IHT) planning is the number one reason for seeing a financial adviser, beating purchasing a property and retiring into second and third place respectively, according to new research from Boring Money.

The firm's Spring Census, which used data from a YouGov survey of 2,042 UK adults, found receiving an inheritance (29 per cent) was the main life event that would motivate them to seek financial advice. This jumps to almost half (49 per cent) for those with a household income in excess of £80,000.

This topped buying a house (24 per cent) and retirement planning (22 per cent), while 28 per cent said nothing would prompt them to see an independent financial adviser.

Holly Mackay, founder and managing director of Boring Money, says the research shows savers and investors need a trigger to prompt them into receiving financial advice.


'Inheritance tax and funds/investments were the two topics most likely to unnerve people - 45 per cent of respondents told us they were very uncomfortable with both ideas,' she says.

'This translates through into actions; if you receive an inheritance you will obviously deal with it, so that's a major trigger for advice.'


The survey reported 45 per cent of respondents were 'uncomfortable' about managing their inheritance tax affairs online without advice.

Indeed, according to financial adviser search engine, the UK is overwhelmingly wasteful when it comes to IHT.

In its TaxAction 2016 report, sponsored by Prudential, Unbiased estimates 'the UK could have saved around £595 million more through some simple estate planning'. This accounts for some 13 per cent of the UK's total for unnecessarily paid tax, which stands at £4.6 billion in 2016.

The report adds: 'For many families, [IHT savings] could be achieved by the simple measure of ensuring that life insurance pays into trust, not into the deceased's estate.'


Despite an acknowledgement of the need for financial advice, Boring Money's survey found that just 8 per cent would be willing to pay more than £100 per hour for financial advice. However, the average adviser charges between £120 and £200.

A further 30 per cent said they would not be willing to pay for advice.

This widespread resistance to footing large upfront bills could pave the way for robo-advice, a $50 billion (£34 billion) industry in the US, to become increasingly popular in the UK, says Mackay.

'You don't have to be a genius to see that traditional face-to-face advice is becoming a luxury, not the norm. So-called robo-advice is likely to pick up some of the slack, although it's early days and people remain cautious about investing this way.

'The direction of travel [towards robo-advice] is clear - what is less certain is the pace of change and how quickly we'll embrace these tech-led solutions.'

*Infographic courtesy of Boring Money.

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