A recent new survey of over 1000 UK parents, conducted on behalf of financial firm Investec Wealth & Investment, has revealed that parents are becoming more hesitant about providing their children with an inheritance over fears that they will lose it in a divorce.
Almost a third of parents (30 %) looking to protect wealth from leaving the immediate family said the possibility of their children divorcing had given them reason to be cautious about providing an inheritance for their married children.
The divorce rate in the UK is one of the highest in Europe and 12% of the parents surveyed claimed their child’s marriage had already broken down and another 14% had little faith that their child would stay married.
Other factors highlighted by the survey indicated 20% of parents were worried their children would squander the inheritance on “unnecessary extravagances” like holidays, and 14% thought an inheritance would reduce the motivation to work in their offspring. There was all concern that there would be little or no money left for their grandchildren.
As a result of these concerns 16% of those surveyed were in favour of giving smaller financial gifts to their children rather than one large lump sum. Another 14% said they will simply skip a generation and give their inheritance to their grandchildren. However the only problem with this plan is that the children could dispute the inheritance in court.
Peter Robinson & Co. can help anyone looking to write their will and ensure they provide for their family and loved ones. Our Wills and Probate Team headed by Tammy Barnes, (holder of the Terrance Willey Prize), will help you plan for your future and that of your dependants.
We can also provide advice with regards to divorce
For further information and advice please contact Peter Robinson & Co. on 0161 678 7996