Financial Planners need to work together in order to engage the next generation of clients as soon-to-be inheritors, according to expanding Financial Planning firm Progeny.

The firm believes clients need more financial advice at a younger age than previous generations.

Inheritance tax receipts rose 35% between April and August, up a third year on year, as more wealth begins to transfer between generations, according to figures released this week from HMRC.

With an ageing population and rising levels of wealth, the UK is set to see substantial growth in the number of inheritances and financial gifts taking place.

Victoria Ross, Chartered Financial Planner at Progeny, told Financial Planning Today that with over £5.5 trillion to pass between generations within the next thirty-years, soon-to-be inheritors will need more financial advice and at a younger age than any generation that has gone before them.

Ms Ross said this provides a huge opportunity for Financial Planners to prove their worth to the older generation of existing clients and to secure new business from their children.

She said: “Today's mass affluent will be tomorrow's high net worth and the advice industry needs to work together to create more solutions to incubate and support these younger generations in moving up the wealth ladder and developing financial resilience into retirement and later life.

“Making a connection with these generations now and in the near future will entail developing a service that suits their lifestyles and designing products that use data and technology for an intelligent and personal experience.”

Ms Ross said Financial Planners need to be proactive to get the younger generation engaged with Financial Planning, rather than waiting for them to take an interest on their own.

She said Financial Planners have an important role to play by actively encouraging earlier conversations between clients and their children about money, as well as encouraging their clients to become more transparent about their financial situation with their family.

She said: “It's so common for children to have no real picture of their parents' wealth until they are older adults, typically as part of inheritance tax planning or relating to gaining power of attorney. The receipt of a significant inheritance can be overwhelming during a difficult time and having some investment understanding and a relationship with the family’s trusted adviser can ease this transition.”

Ms Ross suggested that Financial Planners should invite their clients’ children to Financial Planning meetings for trigger events such as turning 18 or buying their first homes to help engage the next generation with Financial Planning.

She added that not only does engaging with the younger generation make business sense, it is also an important part of helping clients make sure their children are prepared for the future.

She said: “With the lack of meaningful financial education in schools and higher education, initiating earlier conversations about money within families is arguably essential and can lay the foundation for future good habits.”