Adviser demand for flexible inheritance tax (IHT) solutions has increased amid concerns that pension reforms, client inertia, and policy uncertainty are leaving families exposed to potential IHT liabilities, according to Foresight Group.

Its research found that half of financial advisers said at least 50 per cent of their client case were likely to be affected by IHT, based on their assets and liabilities.

Advisers estimated that approximately a third of their clients should have seriously considered IHT or estate planning but were yet to do so.

Potential reasons for client hesitancy on estate planning were identified as a desire to retain access and control of assets, which was cited by 73 per cent of advisers, alongside administrative delays (66 per cent), the perceived complexity of IHT solutions (51 per cent), and policy uncertainty (51 per cent).

Although 89 per cent of advisers were seeing an increase in IHT-related client enquiries and 77 per cent of advisers were taking a more proactive approach to raising the issue, the research highlighted a “stark planning gap”.

To address these concerns, advisers were increasingly turning to business relief (BR) as a solution.

BR has become the most popular IHT strategy, used by 63 per cent of advisers, followed by protection products (55 per cent) and discretionary trusts (43 per cent).

Almost two thirds (61 per cent) of advisers expected BR usage to increase further over the next two years, while 58 per cent planned to introduce BR earlier in the planning process where appropriate.

Two fifths (40 per cent) of advisers were looking for more competitive or innovative BR options, which Foresight Group said signalled strong appetite for differentiated propositions to help them demonstrate value and engage clients sooner.

“Our research shows that, ahead of potential reforms in April 2026, advisers report that ongoing volatility adds complexity into long-term planning and increases the likelihood of client hesitation – often to their own cost,” commented Foresight Group partner, Hugi Clarke.

“With more advisers asking for innovation in estate planning, we are working hard to support our clients across the UK financial advisory market with simpler, more accessible solutions”

Foresight Group partner, Nick Morgan, added: “The message from advisers is clear: demand for IHT advice is rising sharply, but clients remain hesitant to act.

“BR is increasingly seen as the bridge between inaction and control, helping clients keep flexibility while addressing the IHT challenge head-on.

“This research points to a growing opportunity for advisers to futureproof their client’s estate planning. With younger generations taking a more active role in financial decisions, advisers see BR as a valuable tool for maintaining relationships across families and ensuring continuity of assets.”

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