Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Law firms urged to raise later life lending in IHT planning as inquiries rise

Law firms are being urged to engage with later life lending as part of inheritance tax (IHT) planning advice, as inquiries surge. Equity release referral and partnerships business Key Partnerships says many potential introducers and their clients remain unaware of how later life lending could be used in IHT planning.

Research from the Association of Lifetime Lawyers revealed that 80% of law firms have seen an increase in inheritance tax inquiries. Key Partnerships also highlighted Office for Budget Responsibility (OBR) data showing the record growth of IHT receipts to £8.7bn.

Clients unaware of full range of IHT options

According to the Association of Lifetime Lawyers, 66% of law firms said clients are unaware of the full range of potential inheritance tax planning solutions, including later life lending. Key Partnerships said later life lending can serve as a solution for clients looking to manage IHT liabilities in order to make gifts, but believes potential introducers for equity release referral, and their clients, are unaware of its use.

Law firms seen as a major referral channel

Key Partnerships argued that law firms are well-positioned to expand access to specialist advice and could become a major referral channel alongside IFAs and wealth managers. It called on solicitors to actively ensure clients are presented with the comprehensive range of inheritance tax planning options, and encouraged referrals where expert guidance is required.

Damon O'Connell, director at Key Partnerships, said: "People looking for IHT and estate planning advice increasingly need to be advised on a wide range of options before deciding how they are going to access wealth as part of retirement planning.

"Law firms are often at the heart of these conversations and are ideally placed to help clients understand the options available to them. That includes ensuring they have access to specialist advice where solutions sit outside their own area of expertise.

"Housing wealth is often one of a client's largest assets and should form part of the wider conversation around inheritance tax and estate planning. Modern lifetime mortgages can play an important role in certain circumstances, but it is essential that clients receive independent, whole-of-market advice from qualified specialists.

"Strong referral partnerships help ensure clients can access the expertise they need while supporting good customer outcomes and a more joined-up approach to estate planning."

Why it matters for property professionals

Housing wealth is often one of a client's largest assets, according to Key Partnerships, and the firm argues it should form part of the wider conversation around inheritance tax and estate planning. For UK letting agents and inventory clerks working with landlords and older clients, the findings underline the role property can play in estate planning discussions and the importance of independent, specialist advice.