You are here: Home - Retirement - Retirement planning - News -

Wealthier families pass three-quarters of their wealth to the next generation

0
Written by:
21/09/2017
A third of wealthier individuals plan to pass on wealth to their children during their lifetimes, according to research by Lloyds Private Bank.

In general, wealthier families (those with £250,000 in investable assets) will set aside almost three quarters (72%) of their financial assets as an inheritance to go to the next generation – either before or after death – with half of those surveyed aiming to give their children more than 90% of their money and assets. Those with assets over £1m are the most generous.

Gifts made during an individual’s lifetime are most commonly made in cash, with almost a quarter (23%) of respondents planning to pass on wealth in this way. Other ways to pass on wealth include handing over a share in the family business. Property assets are usually passed on after death (76%), as are other investments such as stocks and shares (54%).

When it comes to deciding how to transfer estates to the next generation, half (49%) of parents planning to transfer wealth to their children rely on their instincts and do what they feel is the right thing for the family. A third (36%) use their own research to make up their mind. Those with assets above £1m are most likely to seek professional financial advice (41% compared to 36% overall).

Grandchildren also get a share of the pie. Those who have grandchildren plan to leave almost a quarter (21%) of their overall assets directly to their children’s children, equivalent to an average of £203,948 per grandchild.

Jon Wingent of Lloyds Private Bank, said: “We are seeing a growing trend of wealthier families beginning to spread their assets across the generations while they are still alive. Anyone thinking of doing this needs to consider a myriad of factors, including whether there is any tax due at the time of the gift and then further down the line on death. In addition to this, they will need to figure out the best way to pass on any wealth. An absolute gift is sometimes the simplest approach, but many families choose a trust arrangement which allows the older generation to retain an element of control for a period of time.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
shutterstock_704920726
£300 property now on the market for £1.9m

An East London council property given away in a lottery has now been restored and put on the market for...

Close