With almost 11m people looking to leave their relatives a combined £2.15 trillion in their wills, research has found that only 41% of ‘children’ actually expect inheritance.

 

Insurance group Aviva carried out an online poll of 1,337 members of the UK population aged between 18 and 80 in October this year. It found that there is a significant difference between how inheritance and retirement are viewed by the country’s generations.

 

58% of parents are keen to help their families and nearly half (46%) want to pass on one of their biggest assets by bequeathing their home. However, 39% of children would prefer that parents use their cash to improve their lives rather than scrimp and save to provide an inheritance, with only 35% in favour of cutbacks.

 

Most people, 79%, believe that they will receive family heirlooms and items of sentimental value in their parents' wills over more materialistic items, though 54% of people still believe they might receive the family home and 39% expect jewellery and cash.

 

But, of those over 55s who will not be leaving an inheritance to their families, the main reason is due to insufficient money, at 57%, rather than just wanting to enjoy their hard earned savings while they can, chosen by just 10%.

 

Brian Bussell, Director of UK pensions at Aviva, believes the main point of contention seems to be how relatives indulge themselves once retired.

 

"We understand that everyone has their own views on what makes a happy retirement, whether this means unlocking the money tied up in their homes through equity release or securing an income for life from a good value annuity. There are many ways that the older generation can make the most of their assets.” 

 

"However, should they be in the enviable position that even after providing for their retirement needs they have sufficient assets to leave an inheritance, we suggest that they seek inheritance tax planning to make sure they can pass on the maximum amount to their families."