The Great Wealth Transfer: Why It Needs to Happen Now

A great generational wealth transfer is upon us, and it cannot happen soon enough.Over the next three decades, some £5.5 trillion is forecast to pass down the generations – that is nearly twice the value of our national debt.

And,of course,the taxman wants a big slice of this.It’s perhaps no coincidence that the inheritance tax threat has been turned up a notch, as frozen thresholds chomp away at your wealth while inflation renders it less valuable.

We may have more money, but it isn’t worth as much as it used to be and the taxman is taking more of it away from us.

The reason this great wealth transfer should happen sooner rather than later is because, for now, family money is perhaps the only way of ensuring that your loved ones can prosper. And the longer this wealth transfer takes, the more money will be lost to taxes.

While many will be happy to pay what they consider to be their fair share of tax (public services need funding after all), we have long crossed that line and the rates of tax we are now being asked to pay are damaging to our lives and to the wider economy. We simply don’t get what we pay for.

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Key Takeaways

• A critically important £5.5 trillion wealth transfer is expected over the next three decades.
• Inheritance tax thresholds are frozen, increasing the tax burden on wealth transfers.
• Inflation erodes the value of wealth while tax rates remain high.
• Transferring wealth sooner rather than later can minimize tax liabilities.
• current tax rates are considered damaging to individuals and the economy.