Are you expecting an inheritance?
I read some very interesting statistics recently, based on a survey of 2000 adults, carried out by Skipton Building Society.
We’ve already discussed the fact that a high percentage of adult children are expecting and indeed planning their future, based on a hoped-for inheritance from their parents, when they die. However, the results of this survey have revealed the true extent of this type of expectation:
• 75 percent of people aged 20-35 are expecting an inheritance
• Most expect their inheritance to be valued at around £78,000
• 68 percent are under the impression that they will receive the family home
• 32 percent think they will be given the car
• 67 percent feel they will be given cash
• 54 percent are relying on this money to fund their retirement
• Around 20 percent hope to use the money to settle debts
• Another 20 percent expect it will help them to buy their first home
Unfortunately, the economic climate affects people of all ages and whilst younger people are focusing on themselves and their own needs, they can forget that their parents are struggling, too.
• Nearly half of all parents over 50 have had to use any savings to fund their living expenses today
• 40 percent of parents have already given handouts to their children
Unless parents are open and honest with their children about what money they can expect to receive after their death, there is a high chance that reality will fail to meet expectation and the children could find themselves in financial dire straits.