Be warned of an Over Reliance on Inheritance Expectations

Author: Laura Burns
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A report by Sanlam UK (https://www.sanlam.co.uk/Insights/Recent-News/Millennials-inherit-1-2-trillion.aspx) carried out recently found that 11 million people aged between 25-45 in the UK expect to receive some sort of inheritance from their parents or grandparents with nearly half, 5.1 million, expecting to inherit at least £50,000 in fixed assets or money.

According to the report four out of five (81%) beneficiaries of inheritance expect to receive money, while just over half (51%) assume they will receive fixed assets of some kind. A further 16% say they expect to inherit a business that their family member owned or part owned and a similar number (15%) say they will be receiving the heirlooms of significant monetary value.

Interestingly the report also suggests that only four in ten (38%) of those set to receive an inheritance have spoken to the gifting party about their plans which could lead to a mismatch between expectations and reality.

“Clearly, the recipients of this wealth- many of whom straddle the line between millennials and generation Xers-are relying on their inheritance to act as a financial panacea,” said Sanlam UK CEO Jonathan Polin. “This is understandable in the context of rising debt levels, stagnant wage growth, and spiralling property costs, all of which have had a deleterious effect on disposable income.”

“That said, over reliance on inheritance could be risky, especially if it affects the younger generation’s level of engagement with savings and investments today,” he added. “As a first step, families need to have full and frank conversations about inheritance-this will ensure younger generations have realistic expectations of what they are to receive and can prepare accordingly.”

If I can help  with advising on estate planning and will writing then please contact me Laura Burns on 0141 552 3422 or by email lcb@mitchells-roberton.co.uk

Laura Burns

About Laura Burns

Laura joined Mitchells Roberton in January 2018. She graduated from Strathclyde University in 2006 where she obtained a B.A. (Hons) in History. She studied for her L.L.B, also at the University of Strathclyde, and thereafter completed her Diploma in Legal Practice in 2009. In addition to this she obtained her STEP Diploma (with Distinction) in 2017. Laura is also a Notary Public and is a Tutor in Private Client for the Diploma in Legal Practice at Strathclyde University. She started her Traineeship with Bird Semple in 2011 specializing in Private Client and Conveyancing. After leaving Bird Semple in 2011 she joined the Private Client department at Macdonalds Solicitors (now Morton Fraser) before moving to Harper Macleod in 2013. Laura advises clients on all aspects of Private Client issues including the preparation of Wills, estate planning, and Powers of Attorney. She has extensive experience in managing the administration of estates, including complex and contentious estates. She enjoys working closely with clients to ensure that their personal affairs are in order and assisting their families through what can be an extremely difficult and emotional period. As well as this she advises on the creation and administration of Trusts, Trust accounting and dealing with assets passing out of Trusts to beneficiaries. Outside of work Laura enjoys travelling, socializing with family and friends, baking, rugby, playing touch rugby and exercising. Email: lcb@mitchells-roberton.co.uk

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