Financial advisers are expecting a boom in demand for advice on inheritance tax (IHT) planning, new research from The Openwork Partnership has revealed.

The financial advice and investment network found that 38% of advisers have seen an increase in demand from clients for advice on IHT planning in the past year.

The research, conducted among 100 advisers across the UK earlier this year, suggested that advisers anticipate the boom is set to continue, with 60% expecting demand to rise in the year ahead, and 19% stating they think it will increase significantly.

Furthermore, the Openwork Partnership research found that more than one in 10 (11%) of the average adviser’s client base is actively seeking advice on IHT.

The top five reasons for the increase in those seeking advice on inheritance planning included greater awareness of the impact of IHT (56%), advisers proactively discussing it with their clients (47%), rising property prices (43%), pensions being more attractive as a way of passing on wealth (41%) as well as COVID-19 increasing interest in financial reviews (25%).

The research also found that the average age people seek IHT advice from a professional is 62-years old. However, a quarter (25%) of advisers have seen an increase in the number of families visiting them for advice in the last 12 months.

“IHT has so many different elements to it,” The Openwork Partnership chief commercial officer, Mike Morrow, commented. “It can often be overwhelming and difficult to know what the best options are for you.

“The COVID-19 pandemic has encouraged many to reassess their finances and ensure everything is as it should be. It’s good to see more people enlisting the help of a professional and parents bringing their family along to start the adviser process early.”

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