Recent news coverage has indicated that the number of older people who are expecting to leave more than £150,000 in their will has almost doubled.
According to The Institute for Fiscal Studies (IFS), in the decade leading up to 2013, the number of people in the over 80’s group who expect to bequeath more than £150,000 on their death, rose from 24% to 44% – an overall rise of 45%.
The IFS suggested that it is the people who are already very wealthy who are going to benefit the most from this trend, with the richest half of elderly households having 90% of that age group’s wealth. So the younger generations of these wealthy old people are set to inherit wealth.
Older people have more wealth to leave their children because:-
- A high proportion of their generation owned their own home
- The rise in house prices
However, many young adults will find it difficult to accumulate their own wealth because of:-
- The drop in the rate of home ownership,
- The decline of defined benefit pensions in the private sector
- Incomes have not risen in line with inflation
Interestingly though, a survey of UK parents found that 14 per cent planned to skip over their children and leave their wealth directly to their grandchildren.
The same poll indicated some 30% of parents were unwilling to leave money to their married children as they feared it would be lost during a divorce.
As people have greater assets it becomes increasing important that they have a will, to ensure that the beneficiaries of their estate are the loved ones of their choice.
Peter Robinson & Co. can help you write your will and give advice on any issues relating to Probate or the distribution of the assets. For more information call Peter Robinson & Co on 0161 678 7996