November 3, 2016

Heir today gone tomorrow

Are you one of the 20 million UK adults banking on receiving an average inheritance of £147,000?

A new study by the Co-op has revealed that one in five over 50’s confess there’s less in the pot for their dependents than they’d hoped.

35% of those asked blame early retirement for the lack of money left and 12% are setting their hard-earned cash aside for future care costs for themselves or their partner.

38% have said their loved ones will get what’s left, after they’ve had a good time. Here’s a list of what they plan to do:

Over 50’s spending the kids’ inheritance

· 60% plan to go travelling
· 40% will use it for home improvements
· 24% will blow it on a new or classic car
· 14% will spend it shopping
· 8% will eat out in expensive restaurants

 

Meanwhile 41% of UK adults have already spent their inheritance (in their heads) – despite the fact they may not receive it, with one in three planning to put it aside for their children and grandchildren, one in four saying they’ll pay off debt and a further one in four hoping to splash it on a holiday.

Adults who’ve already spent their expected inheritance (in their heads)

· 1 in 5 plan to make home improvements
· 1 in 5 would use it to buy their first home
· 1 in 7 would help their children or grandchildren buy a house
· 1 in 10 would put it towards a second home
· 1 in 12 intend on using the cash to start a new business

 

When asked how they’d feel if their loved ones spent their expected inheritance ahead of them receiving it 24% said they’d feel their loved ones made a ‘bad decision’ and ‘wasted’ the money. 20% said they’d be worried for the future, and 12% said they’d be upset and angry that their loved ones did it out of spite.

James Antoniou, Head of Wills at Co-op Legal Services, says: “With people working longer, it’s understandable that they do want to enjoy themselves in later life. It’s interesting however that there is such a gap in terms of what adults in the UK are expecting to inherit from loved ones, versus what they are likely to receive. This highlights that there is often a breakdown in communication when it comes to later life planning.

“For those who are keen to leave something for their loved ones and make sure their wishes are clear, it’s vital that they put a legally effective will in place. Having an open conversation about what people own and the contents of their will with loved ones can also manage their expectations and help avoid disappointment, and possible disputes, after they’ve passed away.”

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Funeralcare, Legal Services