Recently Moore Barlow commission a survey on 250 high-net worth individuals and discovered that personal wealth among UK adults that have assets worth more than £2m decreased during the pandemic by an average of £8,250, with close to half losing between £25k and £50k.
The results showed that of those that saw an increase in asset wealth (39 per cent) were far likelier to invest in property (46 per cent) or high-value items (21 per cent) – including art, wine and jewellery – than in higher risk, higher reward propositions such as Non Fungible Tokens (15 per cent) or cryptocurrency (12 per cent).
Despite wanting to be sensible with their money, the survey also discovered that a significant number of wealthy adults haven’t put thought into estate and succession planning. More than a third (37 per cent) of over 45s said they didn’t have a Will in place. If you don’t have one, when should you make a will? Of the remainder that had a Will, the vast majority (80 per cent) hadn’t updated it in at least five years.
Unfortunately, contrary to popular belief, a lot of wealthy individuals did lose money during the pandemic, whether due to challenging conditions for the businesses they own, a much less lucrative environment for investing or job losses. People are now being naturally more cautious about where they put their cash.
The fact that high-earners are playing it safe with their money makes it all the more surprising that so many are yet to start the process of structuring their estates. Those investing in property should take into consideration how much more complicated these types of static assets make wealth management and succession planning. They aren’t easily divisible between beneficiaries which makes drawing up Wills or starting family trusts much more complex.
Any person whose estate will attract inheritance tax should seek legal advice as to how best to structure their estate to ensuring their wealth passes to their beneficiaries without unnecessary complications and tax implications.
How Moore Barlow can help
If you want a professional and personal service from experienced private wealth lawyers, Moore Barlow are here to help with the managing of your personal affairs. Please contact our private wealth team.