Rebecca Constable is head of philanthropy at Kleinwort Hambros. Constable says that in order to achieve balance and integrate the needs of the whole family, advisers need to fully understand all of a client’s priorities.
“Advisers can ensure they are helping to build a financial plan that incorporates the client's desire to support family, alongside building a legacy that will support other causes they believe in and want to assist.”
Building such a financial plan is “a journey” and takes “numerous discussions with clients over years”.
For Agnew, conversations with clients should be used by advisers to “probe into the client’s deeper intentions for their wealth early on.”
Nick Bird, head of strategic growth at Octopus Investments, says that the ability of advisers to really understand a client's goals and objectives is crucial. “Often people have worked hard all their lives to be in this position, and it’s some of the most important planning you will ever do.”
Collaborative approach
As advisers ‘probe’ into their clients passions, interests, and intentions, Loydon believes that advisers also need to work holistically, with other wealth management partners and specialists.
Advisers need to be able to “dovetail the investment solution with the planning solutions. To some extent philanthropy and inheritance planning go hand in hand for those clients wishing to embark on both – they are mutually beneficial”.
Loydon continues: “Lifetime planning, using trusts, using the right assets, investing in the right way, having a will, engaging family members and professionals – all are really important support elements for clients.”
The holistic approach is also advocated by Agnew who believes a good adviser can “work with clients… alongside other advisers such as wealth planners, tax advisers, and philanthropy advisers, to assist clients in their aspirations.”
Like Lawson, Agnew is keen to stress that the needs of the client, and their family should “not be compromised” when leaving a legacy.
In this way, the family’s legacy – whatever form that takes as expressed by the individual client’s situation – can be better preserved and protected into the future.
Bird recognises that there are sometimes concerns that undermine or limit charitable intention. He says that many people are also nervous about making substantial gifts during their lifetime as they are worried about the potential for large care costs later in life or running out of money.
“Advisers can help by making use of IHT planning options”, including investments that “allow clients comfortable with the risk to retain access while also reducing their IHT exposure,” Bird says.
Ingram adds to this practical support, pointing to options such as: “making clients aware of the tax benefits of gift aid, helping them plan their wills, and introducing younger family members to financial planning concepts which give them a health relationship with money.
