Legacy worries from the bank of mum and dad
05 May 2017
- Parents want to control how the cash they bequeath is spent by their children
- A quarter want to stop family money being lost if their children get divorced
- One in three want to ensure that grandchildren benefit from an inheritance
- One in three are also concerned about paying inheritance tax but most have no idea what the average inheritance tax bill is – it’s about £175,000
Parents are keen to keep control over how any money they leave after they die is spent by their children, new research from Prudential1 shows.
Rising property prices and pension wealth mean that many of the baby boomer generation plan to pass on significant assets to their heirs – and three-quarters (77 per cent) of over-55s have indicated that they want to have some control of how their legacy is spent.
One in four parents (26 per cent) are concerned that part of an inheritance could end up being given to spouses of their children in the event of a divorce. About a third (30 per cent) say they don’t want their wealth to be squandered by their children, and the same number want to ensure that grandchildren benefit from an inheritance.
One in eight parents (12 per cent) want to specify what their legacy is used for and a similar number (13 per cent) have already sought, or intend to seek, financial and legal advice to help ensure that their legacy is used wisely. One in 10 want to stipulate that their children must receive professional financial advice on receiving their inheritance.
Radio interviews via ISDN or various smartphone apps can be arranged on request.