Hughes asks: "What about the branches of the family tree? Certainly, as a result of the educational sessions we facilitate, we encourage advisers to converse with the next generations."
He referenced insurer Legal & General’s 2023 research into Later Life Lending, which suggested 65 per cent of inherited wealth leaves the original adviser.
"You need to secure the next generation of clients", he says - and this is where the protection conversations can come in to protect the next generation and the advice business simultaneously.
Technical Connection's Grant adds: "In discussions around intergenerational wealth planning, advisers increasingly facilitate family wealth meetings, leveraging virtual platforms for convenience post-Covid.
"These conversations, which span multiple generations, emphasise the strategic use of trust planning to optimise family wealth efficiency."
According to him, protection plays a "pivotal role" within these strategies, primarily through whole-of-life insurance policies written in trust, but also where long-term assurance products are sometimes used.
The latter can give certainty of premiums for a fixed term, although clients are taking a risk they may out live the term.
Grant adds: "Planning ensures that assets are protected and efficiently transferred across generations, underpinning the family's financial stability and legacy aspirations.
"This approach not only secures assets for future generations but also introduces a level of financial literacy and preparedness among all family members involved."
simoney.kyriakou@ft.com
