The majority of over-55s intend to pass on wealth through traditional inheritance rather than lifetime gifting, new research has revealed.
The research, undertaken by YouGov for Mattioli Woods, found that passing assets on through an estate remains the preferred approach for most over-55s, while combining lifetime gifts with inheritance is the second most popular strategy. Only a minority intend to transfer most of their wealth before they die.
It comes despite inheritance continuing to be a major source of family conflict. Over six in 10 (64%) over-55s say they have witnessed disputes among relatives or friends over inheritance. Wales was found to have the highest proportion of people who have witnessed inheritance-related disputes (77%), followed by London (72%) and Scotland (69%).
Furthermore, as many as one in five (25%) respondents have never openly discussed inheritance with their family, highlighting ongoing discomfort around the subject.
The research also found concerns about later-life care now outweigh worries about inheritance tax. When asked about the biggest challenges in passing on wealth, over-55s ranked paying for care or other later-life costs ahead of inheritance tax, the risk of running out of money in retirement, treating beneficiaries fairly and the potential for family disputes.
Adeline Christy, wealth management director at Mattioli Woods, said: “Although inheritance disputes are remarkably common, they are not fundamentally changing how most people want to pass on their wealth. Leaving assets through an estate remains the preferred approach for many families, even among those who have seen first-hand the tensions inheritance can create.
“What the findings do highlight is the need for earlier planning and better communication. Many inheritance disputes arise not because of the value of an estate, but because expectations have never been discussed. Open conversations, supported by professional financial advice, can help families understand the reasoning behind decisions and significantly reduce the likelihood of conflict later on.”
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