Member Article

Next generation ‘not trusted with inheritance’ say experts

A third of wealthy individuals in the North East do not trust the next generation to safeguard their inheritance, a new report has shown.

More than 2000 high net worth individuals across the world were questioned on their thoughts on wealth transfer and succession planning, as well as their views on the next generation.

Although figures for the North East appear high, they are still lower than the national average of 40%, indicating the importance individuals in the region place on succession planning. Indeed, 64% say succession is a key priority for them, compared to 57% nationally.

Andrew Milller, Regional Centre Head of Barclays Wealth Newcastle, said: “It is clear that with wealth comes an increasing complexity of choice, and in some cases this can result in concerns about trust and conflict when considering the intergenerational transfer of wealth.

“Understanding options for succession planning in advance, and seeking professional advice can help address these fears and provide confidence that your wealth will be wisely managed in the future.”

It is possible that these results can be attributed to the fact that 40% of families in the North East have experienced conflict due to wealth, compared to 37% across the whole of the UK.

Catherine Grum, Director, Wealth Advisory, Barclays Wealth, commented: “In the case of wealth that has been inherited, tensions around entitlement may lead to disputes.

“However, it is surprising just how many wealthy respondents report experiencing such conflict and the impact that source of wealth can have on this, with wealthier respondents more likely to have encountered such conflict.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .