Research from the Association of Lifetime Lawyers revealed 80% of law firms have seen an increase in inheritance tax inquiries.
Key Partnerships highlighted Office for Budget Responsibility (OBR) data showing the record growth of IHT receipts to £8.7bn.
Later life lending can serve as a solution for clients looking to navigate IHT to facilitate gifting, but Key Partnerships believes potential introducers for equity release referral and their clients are unaware of its use.
Lawyers to ensure clients are well-informed
The Association of Lifetime Lawyers found 66% of law firms said clients are unaware of the full range of potential inheritance tax planning solutions, including later life lending.
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Key Partnerships argued that law firms are well-positioned to expand access to specialist advice and could become a major referral channel alongside IFAs and wealth managers.
It called on solicitors to actively ensure clients are presented with the comprehensive range of inheritance tax planning options and encouraged referrals where expert guidance is required.
Damon O’Connell, director at Key Partnerships, said: “People looking for IHT and estate planning advice increasingly need to be advised on a wide range of options before deciding how they are going to access wealth as part of retirement planning.
“Law firms are often at the heart of these conversations and are ideally placed to help clients understand the options available to them. That includes ensuring they have access to specialist advice where solutions sit outside their own area of expertise.
“Housing wealth is often one of a client’s largest assets and should form part of the wider conversation around inheritance tax and estate planning. Modern lifetime mortgages can play an important role in certain circumstances, but it is essential that clients receive independent, whole-of-market advice from qualified specialists.
“Strong referral partnerships help ensure clients can access the expertise they need while supporting good customer outcomes and a more joined-up approach to estate planning.”
