The ‘baby boomer’ generation - those aged 55 to 75 - are the wealthiest in the UK. Soaring property values, inheritance and the prevalence of final salary pension schemes mean that one in five (20 per cent) over-65s in the UK is now a millionaire, compared with 7 per cent in 2006*. Over the next 30 years, they will transfer this wealth to their beneficiaries in what is expected to be the largest intergenerational wealth transfer the UK has ever seen – in excess of £5.5 trillion**.

A significant opportunity for advisers

This pending transfer of wealth provides simultaneously both an opportunity and a challenge for wealth managers in terms of building relationships with the beneficiaries; the ‘next-gen’. When wealth transfers from one generation to the next, beneficiaries do not necessarily continue working with the same advisers and it’s important therefore to build relationships prior to the wealth transfer.

Building future relationships

Cash as an asset can bridge the gap between working with existing clients and working with their beneficiaries, and Flagstone’s cash platform specifically can provide an effective and transparent way to facilitate ‘next-gen’ conversations as it can support Trust and Power of Attorney structures.

A Flagstone account can be set up for a Trust, enabling the Trustees to optimise the interest generated whilst providing them with the access and control they require. Clients can also open a Flagstone account under Power of Attorney which enables the Attorney to open multiple interest-bearing cash deposit accounts on behalf of the Donor.

The opportunity to retain visibility of your clients’ cash asset ensures that you are able to continue to provide insight-led, timely, holistic advice about the most suitable and tax-efficient ways to invest and ultimately transfer their wealth. Using Flagstone as part of this process enables you to provide valuable advice to your clients and potentially have value-led conversations with their beneficiaries to start building out those important future relationships.

We’re here to support your and your clients’ needs now and in the future

To learn more about how we can support your clients’ cash deposit needs and their Trust and Power of Attorney arrangements, please get in touch.

*   Office of National Statistics
** Centre for Economics and Business Research