Standard Life launches Estate Planning Solutions Pack

Standard Life is launching a new information pack aimed at demystifying estate planning for financial advisers and their clients.

The literature aims to assist financial advisers develop their awareness and understanding of the wide variety of estate planning issues which can arise for clients. The support material in the pack includes:

Information : setting out the basics of inheritance tax
Opportunities and Solutions : how to help clients deal with estate planning and minimise any IHT and the solutions available from Standard Life, including the company’s range of trusts

Supporting you : sources of support and further information for financial advisers

For clients: an Estate Planning guide and other literature

The Estate Planning Solutions Pack draws together the wide-ranging nature of Standard Life’s estate planning proposition, including onshore investment bonds, offshore investment bonds, mutual funds, protection and the IHT issues associated with pensions. This is accompanied by commentary on such wide and diverse subjects as wills, domicile and the IHT issues arising with the family home.

Commenting on the launch of Standard Life’s first Estate Planning Solutions Pack, Julie Hutchison, Estate Planning Specialist with Standard Life Assurance Limited, said “Financial advisers are always looking for ways to add value to their client relationships and estate planning knowledge will be a real differentiator in 2007 and 2008. With the breadth of support and information which Standard Life can make available on estate planning, we can be a key source of support for financial advisers wanting to operate in this growing market.”

Julie continued, “Advisers work closely with clients to help them maximise their wealth and plan for their financial future but this will mean little to the next generation if estate planning is not considered, side by side, with other areas of financial advice.

“Inheritance tax receipts for the last financial year are estimated at £3.54 billion and are projected to rise to approximately £4 billion this year, so this is an increasingly important area for advisers.”

Research carried out last year by Standard Life revealed that half of the UK population had made no plans to have their affairs in order at the time of their death.

The research showed that:-

50% do not have a will
74% do not have a power of attorney
3% own property abroad but do not have a will in that country to cover this property
People with children are less likely to have a will than those who have none – 43% V 52%
People who are widowed/separated/divorced are more likely to have a will than those who are married/cohabiting – 59% V 53%

Commenting on the findings Julie said, “Leaving things to chance has 3 important downsides:

HM Revenue & Customs might get more of an individual’s hard earned assets than if proper IHT planning had been carried out and a will drawn-up

Without a will distant members of someone’s family could benefit financially in ways the individual might not be happy with, and

It will probably cost more in legal fees and take longer to wind up an estate if no will exists

In addition those with property abroad but no will in that country may find the foreign law aspects can be complicated on death.”

The research also revealed that only 17% of individuals have taken advantage of the estate planning benefits of trusts, with 82% still leaving their assets outside this important wrapper. (1% did not respond)

More worryingly, of those with a trust, 56% have not sought legal or financial advice relating to their trust since changes in legislation were announced in the March 2006 Budget. Trusts set up before 22 March 2006 should be reviewed before April 2008 to understand the impact of the changes in legislation.

Julie concluded, “By introducing IHT planning together with improved knowledge on wills, powers of attorney and domicile, financial advisers can make a real difference to their business model and, more importantly, to the lives of their clients.”