Navigating life events and inheritance

Research highlights a profound impact on financial security and life choices

In the current economic climate, the prospect of receiving an inheritance plays a crucial role in shaping major life decisions for many UK adults. More than one in five (22%) UK adults[1] who have received, or expect to receive, an inheritance[2] are delaying or planning to delay a major life event until it is received.

This tendency is particularly marked among younger adults aged 18-34, where the figure rises to 27%. Such life decisions often revolve around purchasing a first property, with nearly one in five young adults planning to leverage their inheritance for this purpose.

Challenges of rising property prices

The dream of owning a home has become increasingly elusive due to escalating property prices and elevated interest rates. For many, achieving home ownership without financial support, such as an inheritance, seems formidable.

In light of this, it’s understandable that individuals might defer other costly life events, opting to wait for more favourable financial conditions. These economic barriers are profound, affecting not just home ownership but other significant life events like starting a family or pursuing further education.

Financial planning and inheritance

Anticipating an inheritance necessitates thorough consideration and strategic planning. It requires navigating the intricacies of inheritance and its broader implications.

Evaluating all potential avenues before committing to major financial decisions is crucial, especially considering that over a quarter of people receive less inheritance than anticipated. A well-structured financial plan can maximise the benefits of an inheritance, ensuring it contributes positively to one’s financial well-being.

Importance of open conversations

Discussing inheritance expectations openly with family members can foster transparency and enhance financial planning. These conversations help align expectations and facilitate informed decision-making for the future.

By engaging in dialogue, families can ensure that everyone is aware of what to expect, which can prevent misunderstandings and conflicts later on. Additionally, open communication can prepare family members to manage the responsibilities of receiving or managing an inheritance.

Writing a Will and estate planning

For those wishing to leave a legacy, drafting a Will is a fundamental step in ensuring that your intentions are respected and your loved ones are cared for. Writing a Will involves detailing how your assets should be distributed and who will execute your wishes.

Inheritance can have a profound impact on financial security and life choices. Whether you anticipate receiving or intend to leave an inheritance, seeking professional financial advice is crucial to making informed decisions.

Do you want to discuss protecting the interests of beneficiaries and minimising potential legal complications?

We can help you craft a comprehensive and tax-efficient estate plan that protects the interests of beneficiaries and minimises potential legal
complications. If you require further information or guidance on managing an inheritance and financial planning, we can provide the support and insight you need to navigate these complex matters effectively.

Source data:
[1] Survey conducted by Opinium among a nationwide representative sample of 2,000 UK adults between 9-13 February 2024.
[2] All data come from questions that were asked to those who have received an inheritance in the past 5 years or expect to receive an
inheritance in the next 5 years.

THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT

DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR
GUIDANCE, SEEK PROFESSIONAL ADVICE.