- 74% of the respondents think the next generation will be the same or worse off financially.
- Despite this, only 14% regularly discuss money and inheritance with descendants, with only a quarter (26%) having taken measures to mitigate IHT.
Research carried out as part of the private and commercial bank, Arbuthnot Latham’s Financial Wellbeing Report shows respondents do not think younger generations will be better off than them financially, with fewer than a quarter of them talking to their children and grandchildren about money and inheritance regularly.
The survey found that three quarters (74%) of the respondents think the next generation will be the same or worse off financially, which challenges the age-old perception that younger generations will always be better off than their parents due to long-standing trends of economic growth and improving standards of living. Alongside this, only 14% of respondents say they talk to children or grandchildren about money and inheritance on a regular basis, which could leave many young people in the dark about their financial future.
As those surveyed showed their pessimism for the financial prospects of their children and grandchildren as they face the perfect storm – a cost-of-living crisis pared with rising property prices and higher rents – it is surprising to see so few taking measures to mitigate inheritance tax (IHT).
- 26% said they have taken measures to mitigate IHT.
- only 18% said they were worried about the potential effects it will have.
Despite over half of the remaining participants saying they are looking into IHT mitigation, Arbuthnot believes estate planning is best approached as a continuous process to make sure it reflects the latest laws and regulations.
Following widespread speculation about potential changes to IHT in the Spring Budget, the announcement that no changes will be made may have come as a shock to those who will incur charges due to lack of planning. We believe people should be prepared for all situations, shifting the focus from apprehension to empowerment and allowing a more secure and prosperous financial landscape to be secured for future generations.
Rachel Wyatt, Wealth Planner, Arbuthnot Latham, said: “Conversations about passing down wealth are crucial in achieving the outcome you want. Without proper estate planning, your beneficiaries are kept in the dark and this can result in relationship tensions due to uncertainty and an inability for them to plan efficiently. An estate plan gives you the tools to have a proper conversation.”
