By 2030, around £5.5 trillion is expected to be transferred, mainly from the Baby Boomer generation. Neil Jones, Tax and Estate Planning Specialist at Standard Life, highlights the growing importance of trusts in helping families pass on wealth efficiently amid rising tax complexity.
This generation, among the wealthiest in UK history, has benefited from rising house prices, defined benefit pensions, and longer life expectancy, leading to substantial accumulated wealth now being passed on.
While this creates opportunities for younger generations, it also increases exposure to inheritance tax, which can significantly erode family wealth without proper planning.
The “Great Wealth Transfer” is also taking place amid major tax changes and fiscal drag, including pensions being brought into IHT from April 2027 and a frozen nil-rate band until 2031, increasing the number of families affected.