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Parents want control over how inherited money spent

5 July 2020

Two thirds of grandparents and parents want control over how their relatives spend their inheritance, fearing they may “squander” the money, new research from Openwork has shown.

According to its nationwide study, 63% of parents and grandparents want some form of control over how their children and grandchildren plan to spend the money, with around a quarter (24%) taking legal advice to ensure any funds given to relatives are spent wisely.

More than one in ten (12%) of over-45s want to stipulate that their children receive financial advice on how to spend any inheritance they receive.

One of the biggest concerns was around divorce, with nearly three in ten (28%) people surveyed admitting they want to ensure any wealth they pass on does not end up with ex-partners.

A quarter (25%) of those questioned also want to ensure that their grandchildren benefit from their assets, while nearly one in 10 (9%) want to have a say on exactly what the money is spent on.

The findings also revealed that many children and grandchildren are set to receive money soon, with around 37% of those surveyed considering giving £5,000 or more as gifts in the next five years. Around three quarters (72%) plan to give money to help with major purchases before they die, with 24% aiming to give £15,000 or more per child. More than half (55%) of those giving money will help fund a house purchase.

Mike Morrow, wealth and platform director, said: “Parents and grandparents are clearly worried about any money they give to family being squandered and want some control over how the money is spent. That is understandable when most will have worked hard to accumulate wealth and naturally want their children and grandchildren to get the most benefit from the cash.

“People who receive major windfalls do need to think carefully about how they use the money and would benefit from financial advice on how best to achieve their goals whether it is saving or investing or buying a house.”

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