Nearly a quarter (24%) of UK adults are anticipating a dispute over inheritance, due to a lack of open conversations around the subject, according to new research from Canada Life.
The finding show that almost a fifth (18%) have already had a dispute within their family due to a lack of discussion about inheritance planning.
Canada Life said the leading reasons behind people choosing not to discuss their inheritance plans was a decision not to leave an inheritance to a family member or loved one (19%) or the fact that they have not yet started inheritance planning (19%).
The research also found that 10% of people said they do not talk about finances as a family, rising to one in six (13%) for those age 55 and over. Meanwhile, 5% said that they had tried to have a conversation about inheritance but their relatives or loved ones did not want to discuss it.
Canada Life said those expecting to receive an inheritance are equally reticent to discuss it. Nearly a third (29%) felt it was “too far in the future”, while 26% said they prefer not to think about it and 21% said it was no-one else’s business.
The research also highlighted generational differences, with almost two fifths (37%) of adults believing older generations were more closed about discussing inheritance issues. However, 43% plan to be more open with family and loved ones than previous generations.
The findings showed the majority of adults believe there would be positive impacts from being more open around inheritance. Three-fifths (60%) believe that more transparency would help family members understand where they stand with inheritance, while 41% said it would minimise legal complications in the future.
More than a third (35%) agree that open discussions could lead to a fairer distribution of assets and 34% believe it could reduce conflicts among family members. The same number (34%) said it would also help family members better plan for their financial future.
Stacey Love, tax and estate planning specialist at Canada Life, said to prevent conflict around inheritance tax families must be more transparent.
“To prevent issues, we need a shift toward transparency. It’s encouraging to see that more than two-fifths of people plan to discuss inheritance more openly than previous generations, breaking the taboo around inheritance and later-life planning.
“Open conversations can ensure intentions are clear, reduce potential conflicts, and better prepare loved ones for the future. By fostering a more openminded approach, families can build stronger relationships and reduce misunderstandings over time, as well as feel more in control and satisfied with outcomes.
“Working proactively with a financial adviser can be an essential step to make inheritance planning smoother, more manageable, and easier to communicate to loved ones.”
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