Use of investment bonds increases ahead of DC pension tax change, Chesnara finds
On average, advisers said over a quarter of clients were already changing their estate plans ahead of the change, which comes in next April.
Unused defined contribution (DC) pension funds being added to estates is changing advice and leading to more onshore investment bond use, research from Chesnara Life (UK) Ltd found.
On average, advisers said over a quarter of clients were already changing their estate plans ahead of the change, which comes in next April.
One in eight advisers said 40% or more of their clients were updating their estate planning now.
By the time the change comes in, advisers estimated that 30% of clients would have amended their plans, with more than a fifth estimating 40% or more of clients would have changed their approach.
Most advisers expected to use onshore investment bonds more.
71% said they would increase use of the bonds for estate planning, and 68% planned to use them with trusts.
One in five advisers said they would use property wealth more, while 10% planned to make more use of gifting through lump sums.
Advisers said estate planning had become more challenging over the last two years, with 81% saying inheritance tax and estate planning was now more complex.
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