More than half of UK adults haven’t discussed the subject
With wealth for millennials set to double in the next 20 years, it’s time to get over the awkwardness and have the conversation now. One of the main reasons why people don’t discuss their inheritance wishes is that they assume estate planning is not for them. That it is only necessary if you are very wealthy.
Most
of
us
would
like
to
leave
a
legacy
But
nothing
could be
further
from the
truth.
Most of
us would
like to
leave a
legacy
and if
you want
to
ensure
your
wishes
are
followed,
obtaining
professional
advice
and
planning
is
essential,
whatever
your
circumstances.
New research[1] has highlighted 58% of UK adults admit they have never discussed inheritance matters with their loved ones – with the reluctance to do so equally split between men and women. The findings revealed that the main reason people shy away from it is because they don’t believe they have enough assets to consider it worthwhile (18%).
Getting
older
is
the
main
prompt
for
thinking
about
such
matters
However,
for
nearly
half the
population
(49%),
getting
older is
the main
prompt
for
thinking
about
such
matters.
Other
life
events
that
have
pushed
people
to
confront
it are:
the
birth of
a child
or the
death of
a parent
(both
7%),
followed
by the
COVID-19
pandemic
or a
health
scare
(both
4%).
And there are certain people who hold the key to unlocking these conversations, with 54% saying their partner is the preferred person to talk to, followed by 22% who feel most comfortable chatting things through with their children. Worryingly, only 2% say they have discussed it with a solicitor and only 1% have done so with a professional financial adviser.
Ready to start a conversation about inheritance?
The
importance
of
an
up-to-date
Will
Making
a Will
provides
a good
reason
to have
a
multi-generational
family
meeting
about
your
inheritance
wishes.
Having
an
up-to-date
Will is
important
for both
you and
your
family.
The
truth is
that
having
an
out-of-date
Will is
as
problematic
as
having
no Will
at all.
Once you have an up-to-date Will, talking it through with your professional financial adviser, they can then recommend a plan about how to approach your inheritance goals. Also remember, failing to prepare your children for what they may inherit can hinder their ability to handle money wisely.
Take
advantage
of
the
gift
allowance
You
can give
away
£3,000
each
year and
this
will not
be
subject
to
Inheritance
Tax
(commonly
called
IHT for
short).
In
addition,
parents
can gift
£5,000
to each
child as
a
wedding
gift,
while
grandparents
can give
£2,500.
Gifting money regularly throughout the year can be a great way to financially help loved ones and can also reduce your IHT liability. Some people will find it hard asking for money, so try and speak to your children and grandchildren to find out if you can help them with something specific, such as a new car or school fees.
Let
life
events
help
you
start
a
conversation
Life
events,
like a
birth,
adoption,
marriage
or a
family
bereavement
can make
people
evaluate
their
own
plans.
Use
these
opportunities
as a way
of
talking
to
relatives
about
how you
would
like to
pass on
your
wealth.
Talk
about
later
life
care
Many
people
are
worried
about
how they
will pay
for
social
care
when
they get
older.
As a
result,
people
may be
starting
to plan
for this
earlier
than
previous
generations.
It’s
important
to talk
to your
family
about
the care
you want
so they
stay
true to
your
wishes.
This
could be
an ideal
time to
introduce
the
subject
of
inheritance,
as
estate
planning
and
later
life
care go
hand in
hand.
Talk
about
family
heirlooms
If
you find
it hard
to
approach
the
subject
of
estate
planning
with
your
family
then a
good
place to
start
could be
talking
about
family
heirlooms.
People
enjoy
hearing
stories
about
older
relatives,
even if
they
never
had the
chance
to meet
them.
Talking
about
items
that are
important
to you
or were
important
to other
family
members
can be a
great
way to
start a
conversation
about
estate
planning.
Source
data:
[1]
The
research
of
3,000
nationally
representative
UK
adults
was
commissioned
by
Find
Out
Now
in
November
2021
on
behalf
of
Brewin
Dolphin.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS.
ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.
Content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements or constitute a full and authoritative statement of the law. They should not be relied upon in their entirety and shall not be deemed to be, or constitute advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. For more information please visit www.goldminemedia.co.uk