According to research conducted by wealth manager Charles Stanley, women are more likely to focus their children while planning their wealth, whilst males are more likely to focus on their spouse.
The survey discovered that over half (45%) of high-net-worth (HNW) women prioritise their children in succession planning, compared to only 33% of males. Instead, 37% of males put their spouse first, while only 17% of women do the same.
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However, these intentions may not materialise without proper legal arrangements. Shockingly, only 59% of HNW individuals have a will, with men (64%) slightly more likely than women (57%) to have one.
Additionally, 29% have set up a trust, while 24% have a Lasting Power of Attorney. Even more concerning, one in seven HNW individuals have no plans in place for passing on their wealth.
The data also reveals a heavy dependence on financial advice. The vast majority (81%) of high-net-worth individuals have sought financial advice, with males (90%) being more likely than women (79%) to do so.
Most people seek advice independently (58%), while 25% do so with their partner or spouse, and a small fraction (5%) have even consulted an adviser with an ex-partner.
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By GlobalDataMia Kahrimanovic, Financial Planner at Charles Stanley stated: “Considering your own mortality can be a difficult thing for many people to contend with. But succession planning is crucial to protecting your wealth and ensuring it is passed on to loved ones.
“Inheriting wealth can provide security and valuable opportunity for the recipient, which is why it’s important that HNW individuals take time to consider their plans and think about where they’d like their wealth to go. Circumstances can change in a heartbeat, so it’s surprising to see that one-in-five (19%) have not spoken to a financial adviser, and others do not have crucial planning tools, such as a will, in place.
“Given that within couples, plans and intentions may be different for each person, seeking financial advice can align all parties and establish a clear plan to secure the financial future for any families or beneficiaries involved.”
