LendInvest BTL | Intergenerational wealth management

Intergenerational wealth management is about how families use their collective wealth to support each other during their lifetimes.

Why do I need to plan for this?

Increasing life expectancy and major social change mean many families need to reconsider how their wealth can work harder for the benefit of the whole family. We are now witnessing a phenomenon where the ‘baby boomers’ – those born in the post-war era and approaching retirement – represent the wealthiest generation in our society. However, whilst they enjoy the fruits of their labour, they are sandwiched between elderly parents facing the challenges of old age and children struggling with the hangover of university debts and spiralling house prices.

1- Protecting the family

Insurance policies designed to span multiple generations offer comprehensive coverage for individuals within a family, providing a heightened sense of reassurance. These policies go beyond individual or single-generation coverage, extending protection to family members across different age groups. This approach ensures that the diverse needs and circumstances of each family member are considered and addressed, contributing to an overall sense of security and well-being. Intergenerational insurance plans often offer flexibility and customization options to accommodate the evolving needs of family members over time.

2- Family healthcare plan

Collaborating with LendInvest BTL, WPA has crafted a distinctive and exclusive Family Healthcare Plan that spans generations. This unique plan not only safeguards your health but can also extend coverage to your entire (extended) family, offering peace of mind for your children, grandchildren, parents, and other cherished individuals.

3- Family insurance plan

Presented in partnership with Gallagher, the Family Insurance Plan is, to our knowledge, the inaugural intergenerational general insurance policy tailored to cater to the comprehensive needs of entire families. This inclusive coverage is designed to address the majority, if not all, of your general insurance needs. Should you wish to explore the suitability of this innovative product for your family, please contact an adviser or download our brochure. It's important to note that advice pertaining to this plan will lead to a referral to Gallagher, whose services are separate and distinct from those provided by LendInvest BTL.

4- Elderly parents

As our parents face increasing frailty or vulnerability, many of us may find ourselves concerned about the best approach to address their care needs. Various options come into play, particularly if they own their own home. This gives rise to a myriad of questions. Should they move in with you? How might residential care be financially supported? Is it possible to refrain from selling their home to cover care costs? On the flip side, they may possess a substantial estate; if so, have they taken steps to minimize their Inheritance Tax liability, and if not, how can you assist them in doing so? Whether your worries revolve around the current or future funding of care home fees for a loved one, a BTL's Place Partner can provide assistance, helping you and your family comprehend the available options and navigate through what can be a sensitive and stressful period.

5- Getting onto the property ladder

The challenges confronted by younger individuals in entering the realm of homeownership are widely acknowledged. Renting, in many cases, extends well into one's thirties or even beyond. Consequently, an increasing number of parents and grandparents are intervening to assist their children in taking the first step onto the property ladder. Various methods can be employed for this purpose, including gifting, loans, and offering security to mortgage providers. These approaches not only warrant consideration but also offer the additional advantage of aiding in effective estate planning. However, it is crucial to exercise caution and seek advice when deciding on the most suitable option to avoid unforeseen tax implications resulting from this act of generosity. For additional details, please refer to our banking and mortgages page. It is important to note that the home securing the mortgage may be repossessed if payments are not kept up to date. If contemplating providing security to mortgage providers, we strongly recommend that the guarantor seeks legal advice to ensure a comprehensive understanding of their obligations in relation to the mortgage.

6- Investing for children

Supporting your children in entering the property market is generous, but starting an early investment plan offers even more advantages. Allocating funds from the early years ensures that small, regular investments can benefit from compound growth, reducing the risk associated with larger investments at unfavorable times. By age 18, this could result in a substantial fund for university or a house deposit. Utilizing gifting allowances for investments—£3,000 lump sum and unlimited £250 gifts per person per year—allows wealth transfer without Inheritance Tax penalties. Note that only a parent or guardian can establish a Junior ISA. Explore our Junior ISAs. Learn about gift concepts in the context of your circumstances. For estate planning assistance, connect with an adviser. The value of a LendInvest BTL investment is linked to fund performance and may rise or fall, potentially yielding less than the initial amount invested. Taxation changes depend on individual circumstances.

Intergenerational wealth management