inancial planning is the process of setting goals, creating strategies, and managing financial resources to achieve both short-term and long-term objectives. It involves analyzing one’s current financial situation, identifying future needs, and developing a roadmap to meet those needs. Financial planning is crucial for individuals, families, businesses, and organizations to ensure they are prepared for various financial challenges and opportunities.

Increase in Charitable Bequests

There has been a notable rise in charitable bequests exceeding £1 million, with the total value reaching £1.1 billion in the 2021-22 tax year, up from £850 million the previous year. This trend is partly driven by tax planning strategies aimed at reducing inheritance tax liabilities. Charitable donations are exempt from inheritance tax, and giving more than 10% of an estate to charity can lower the tax rate on the remainder. Financial advisors emphasize that such decisions should align with both personal values and financial goals.

Wealth Management Industry Developments

he wealth management sector is experiencing significant consolidation. Captrust Financial Advisors has acquired Campbell Wealth Management and TruNorth Wealth Partners, adding a combined $2 billion in assets. This acquisition strategy has propelled Captrust’s assets under administration to over $1 trillion. Similarly, Creative Planning has expanded its reach by acquiring Goldman Sachs Personal Financial Management, further consolidating its position in the industry.

Trends in Financial Advisory Services

The financial advisory landscape is evolving, with firms like St James’s Place (SJP) and Evelyn Partners undergoing significant transformations. SJP is revamping its fund offerings and fee structures, while Evelyn Partners has expanded through acquisitions, including the purchase of an accounting business. These developments reflect broader trends in the industry, such as mergers and acquisitions, and a focus on diversifying service offerings to meet changing client needs.

These developments underscore the dynamic nature of financial planning, highlighting the importance of staying informed about legal, tax, and industry changes to effectively navigate the evolving financial landscape.