‘It’s wrong’ to make children wait for their inheritance, say nearly half of over-55s.

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Nearly half of over-55s believe it is “wrong” to make children wait for their inheritance.

When considering a pre-inheritance gift, consulting with an independent financial adviser is often the best place to start.

According to research, passing on a “living inheritance” to children and grandchildren is becoming more popular among the over-55s in the United Kingdom.

According to equity release adviser Key, nearly half of over-55s believe that delaying an inheritance is wrong – especially since the average age of inheritance is 47, when most people hope to have already made large purchases such as their first home.

Despite the fact that Chancellor Rishi Sunak chose not to change inheritance tax in last week’s Budget, Key’s research shows that more than half of people – 53% – would support tax incentives to give money to children if it was used for major purchases like a first home deposit.

According to Key’s research, it would also be welcomed by the under-40s: two out of every five people polled have given up on getting on the property ladder without the help of family, and 56% want the government to do more to address the intergenerational financial divide.

First-time buyers already benefit from no stamp duty on homes worth less than £300,000, as well as Lifetime Isa support.

However, given the rising costs, more assistance is still required, according to Will Hale, CEO of Key.

“While the recent Budget did not address this issue, both the older and younger generations are eager to see more support for intergenerational fairness-promoting choices,” Mr Hale said.

“Indeed, while the over-55s are aware of the need to plan for their own retirement finances as well as potential care costs, they also want to assist their children and grandchildren financially.

“A pre-inheritance that helps pay for university tuition, a first home, or a dream wedding can make a huge difference, and when equity is released from the benefactors’ home, it puts money back into the economy that would otherwise be trapped in bricks and mortar.”

The greatest potential threat to pre-inheritance and in-life gifting, according to the research, is over-55s’ concerns about the cost of care.

Almost half of this age group believes that paying for care later in life will prevent them from leaving an inheritance.

The threat of not being able to pay for care is seen as a greater one than running out of money.

UK news summary from Infosurhoy

‘It’s wrong’ to make children wait for their inheritance, say nearly half of over-55s.

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Making children wait for their inheritance is ‘wrong’ say nearly half of over-55s

i Money has produced a complete guide to equity release in association with Age Partnership. To request your free copy, call 0808 239 1913 or visit inews.co.uk/release

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