This week ‘in the news’ the Express reported on the ‘millions of younger people that are banking on an inheritance from mum and dad’.
The article went on to outline how ‘baby boomers’ those in the age bracket of 60s/70s, who had benefitted from higher property values, final salary pensions and the stock market boom in the 90s as the internet took off, now find themselves in situations of financial worriment. With the rising cost of inflation, cost of living crisis and increasing care home fees things have started to become tighter than expected, making the passing of family wealth much harder.
Cara Hough, Partner at IDR Law comments,
It is well known that 1 in 3 are relying on their inheritance to fund their future, and clearly the ongoing rise in inflation and costs of living will have an impact on the money we have available to us now and in the future.
Care should always be given to personal finances and while this reliance on a potential future inheritance is clearly there for many, it is sensible to consider alternatives as the current economic landscape, and the inevitable unpredictability of the economy, will impact us all.”
The article got us thinking more around the importance of succession planning. And, as contentious probate solicitors, we know how important planning your legacy is. In our experience people find it difficult to discuss death, this is understandable, it’s a taboo. However if these types of communications are not happening, it can make it far more difficult for our families later down the line, when effectively it’s too late.
Earlier this week the Independent talked around the process of easing your children into estate planning. Commenting that some have the view that it is something only the wealthy or elderly should be considering. When in fact those conversations should be taking place for us all, age-appropriate discussions with our children are key in introducing them to the idea of succession planning, understanding the specifics of their parents plans and then as children grow older developing their own plans wont seem so alien.
By planning ahead it is certainly a start to helping to reduce will disputes and inheritance claims going forward.
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