Securing the financial stability of future generations remains the top priority for advisers’ ultra high net worth (UHNW) clients, but younger generations are beginning to influence attitudes, according to a report from STEP.

The professional body for trust and estate practitioners’ Attitudes to Wealth report included insights on global clients’ attitudes to wealth and tax from more than 900 private client advisers.

It found that UHNW clients were increasingly informed and intentional about establishing enduring legacies that protect their families’ futures.

However, new generational perspectives were starting to surface, and social responsibility was becoming a key consideration, especially among younger clients.

Despite this, the increased consideration of social responsibility was yet to translate into “meaningful action”, and STEP highlighted the importance of avoiding assumptions and the need to assess each clients’ needs to develop a truly personalised approach.

It stated that while taxation remained a key concern, mitigating tax exposure was not the most influential factor for clients, and there was movement towards an approach that balanced efficiency and compliance with long-term wealth planning.

As the younger generation becomes more influential, new approaches to tax planning and a change in language around tax may be required, according to STEP.

The report also highlighted a need for greater education on trusts and related structures, and for barriers to be overcome regarding open discussions about wealth within families.

It identified a “significant number” of advisers that were now engaging clients in comprehensive discussions about responsible wealth stewardship, integrating philanthropic interests and personal values into tailored planning strategies.

Wealth advisers were urged to take several ‘actionable steps’: empower through education; adapt to new priorities; monitor legislative shifts and advise on cross-border tax issues; champion sustainable investments; avoid misleading information, such as greenwashing; demonstrate global expertise; and deliver personalised, trusted advice.

“Safeguarding legacy for current and future generations overwhelmingly remains a priority for clients,” commented STEP spokesperson, Catherine Grum.

“What is also apparent is that attitudes are not uniform with some clients taking steps to limit their wealth accumulation. The same is true in relation to their views of taxation.

“In the main clients have a more negative than positive attitude to tax which may not be surprising but more than one in 10 reported a more positive attitude towards taxation. A significant number of practitioners had clients who actively declined tax reliefs. It’s therefore increasingly important to take the time to ascertain where your clients stand.

“There's a clear rise in social responsibility, particularly among younger clients. It's encouraging to see advisors routinely broach philanthropic giving. There remains significant potential to embed these discussions at the core of wealth planning, aligning financial decisions with personal values and purpose.

“Over the next decade, we are likely to see a significant shift in client attitudes, amid rapid technological advances, geopolitical risks and evolving tax policies. The challenge for practitioners is to adapt and position themselves to support clients across the spectrum.

“With increasing reliance on AI and automation, maintaining strong client relationships while promoting responsible wealth stewardship will become more critical.”

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