Consumer Duty, ISA Growth & the Risk of Oversimplified Trust Advice: One size doesn’t fit all.

Mark Wintle at WAY Trustees Limited explains:

With recent Budget proposals bringing IHT planning back into focus, now is the time for advisers to reassess how they approach Trust planning — and whether they are meeting the standards set by the Consumer Duty.

One area of concern is the failure to consider multiple Trust frameworks or to assess the impact of unaddressed ISA growth in estate planning. Under Consumer Duty, we are required not only to deliver suitable advice, but to avoid foreseeable harm and ensure our files show clear evidence of consideration and rationale.

Take ISAs as a case in point. While tax-efficient during life, they form part of the taxable estate on death. A client holding a £200,000 ISA portfolio that grows to £300,000 could be facing a £40,000 IHT liability, a cost that is entirely foreseeable yet often goes undiscussed. If the adviser has not reviewed this or explored mitigation strategies like Loan Trusts, this becomes a compliance risk.

It’s important that advisers take into consideration the wider piece from outset, the days of only recommending a Trust to use the clients available NRB has gone, and this continued approach is not just an oversight, it’s potentially a breach of duty leading to poor consumer outcomes.

 Key Takeaways for Advisers

• Document your thinking: Show that alternative Trust frameworks were considered and discounted with reason.
• Assess all assets: Include ISAs and other growth assets in IHT planning — these are often overlooked.
• Avoid boilerplate advice: Consumer Duty raises the bar — recommendations must be specific to the client’s full picture.
• Future-proof your files: A silent file on foreseeable issues is no longer acceptable under regulatory expectations.

Conclusion

Consumer Duty has shifted expectations. Estate planning advice must now demonstrate breadth of thinking, not just product suitability. As the FCA sharpens its lens on advice quality, the failure to consider or document alternative Trust strategies — and the omission of clear tax liabilities like ISAs — is no longer a passive oversight. It’s a foreseeable harm.

If you’d like help reviewing or redesigning your estate planning process — including file structure, Trust framework selection, and identifying gaps, we would be happy to assist. Get in touch to explore how we can strengthen your advice model, ensure Consumer Duty compliance, and improve outcomes for your clients.

It’s time we raised the bar — not just for compliance, but for clients.

Contact us today: