It is becoming increasingly apparent that, with one trillion pounds worth of assets being transferred to future generations[1], younger people could benefit from increased financial education. Even if wealth is not being transferred having an understanding of financial fundamentals is a key life skill.  

Two thirds of young people inheriting wealth are unlikely to use the same financial planners as those they are receiving it from[2]. This can result in a large group of people gaining considerable funds and not receiving any further advice on how best to manage it.

Although it might seem a difficult task to prepare younger generations for future wealth transfers, there are steps that both you and your planner can take in preparation.

Assess your finances

Initially, it is crucial that you assess your own personal financial situation before you consider engaging with younger generations. You need to understand how much you can afford to gift, and at which point in your life or on death. Once you understand your position, you can then begin to discuss what your objectives and goals are for your children and grandchildren.

Understand all objectives

Once you are clear about your objectives, it is a good idea to discuss what your recipients’ objectives are as well. These conversations will allow you to have an insight into how your gift may be spent and will provide you with the opportunity to give guidance. You can help to provide different options to benefit recipients in the long term. This might include opening an ISA or purchasing a property.

Be tax efficient

You should also assess how tax efficient your current arrangements are, for example it might be beneficial for you to open junior ISAs for your dependents. You can save up to £9,000 per child, per year. You could also choose to utilise your annual gifting allowance. This allows you to gift a total of up to £3,000 per tax year without it being subject to inheritance tax (IHT).

Start the conversation

Engaging with your dependents early in their financial journeys can be beneficial for their adult lives. You may wish to invite them into your meetings with your financial planner to help them gain an understanding of how finance works within their family and what they may be managing in the future. This may also encourage them to continue to use a financial planner once they are in a position to benefit from advice.

Ultimately, we all understand the importance of engaging young people in their finances and their future financial journey. You can work with your financial planner and beneficiaries to help build the foundation of a positive financial education.

If you would like to know more, our podcast ‘In the know’ has a series which covers the fundamentals of wealth transfers. You can find the episodes here. To find out how your planner can help, please get in touch by emailing or calling 01603 706 820.


[1] Venkataraman, Ayesha, Advisers should not ignore younger generations – Schroders, Professional Adviser, 3rd December 2021, Advisers should not ignore younger generations – Schroders (, accessed on 08/12/21.

[2] Ibid.

Get In Touch

Submit a contact form today and a member of our expert team will be in touch to discuss your needs further.

    Request call back
    close slider