Advisers have reported a rise in the number of clients now concerned about intergenerational planning, new research by HSBC Life (UK) has indicated.

The group’s findings revealed 80% of clients are now concerned about this area, up from 75% in 2022. The study also found that 39% said intergenerational planning is “highly important”, compared with 34% previously in 2022.

HSBC Life’s study, based on 300 advisers, suggested that changes made in last Autumn’s Budget had made them more likely to consider trust-based solutions for inheritance tax (IHT) planning. It found that 79% of advisers are more likely to consider trusts as a direct result of the tax changes announced by Rachel Reeves last October.

Recent figures published by HMRC revealed that a record £8.2bn was paid in IHT in the year from April 2024 to March 2025, an £800m rise on the previous year and the fourth year running that the record has been broken.

The HSBC Life research, published in its report titled The Three I’s of Investable Capital 2025, indicated that advisers are working hard to support clients with IHT and more than two out of three (68%) of clients have discussed IHT planning with their adviser.

Head of onshore bond distribution at HSBC Life (UK), Mark Lambert, said: “It has never been more important for advisers to actively engage clients and their dependents on intergenerational wealth transfers.

“Record IHT receipts, and demand from clients for support, clearly makes the case for advisers to redouble efforts on estate planning.”

However, less than half (47%) of advised clients have solutions in place to reduce or plan for potential IHT on their estate. HSBC also found that 42% had not acted while a further 11% were unsure if they should do. The study also found that 29% of clients said their adviser had raised IHT planning with them but had not yet taken action.

The vast majority (98%) of advisers questioned for the HSBC Life report said that taking an intergenerational approach to planning is important to clients.

“We believe advisers will be seriously considering making the fullest use of the relevant tax effective wrappers available, including onshore bonds,” Lambert added.

“Combined with an appropriate trust, onshore bonds can form part of a highly tax efficient estate planning strategy with simplified tax administration.”

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