Young families rely on their early Inheritance
With the cost of living increasing and house prices rising it’s no surprise that young families rely on their early Inheritance. Around one in five Brits have already received part of their inheritance from their parents, according to a new study.
Research from Skipton Financial Services (SFS) has suggested an increasing number of families are turning to their parents for financial support years before they pass away.
It was indicated that 16 per cent of under-35s have already received a sum of around £50,000 from their parents. Whilst one in ten have been given a six-figure sum.
A report from Myfinances.co.uk says that many children are asking their parents or grandparents for their inheritance early in order to help them put a deposit on a home. Whilst others require financial support for weddings, large debts or long periods of unemployment.
This could leave many Wills and probate solicitors with much simpler tasks to perform when the time comes to administer the estate of the parents according to the wishes in the Will and applying for probate.
However Large gifts can cause complications when it comes to inheritance tax. As long as the person making the gift survives a further 7 years that gift will not be counted as part of their Estate.
In an interview with The Daily Express, SFS Managing Director Andrew Barker claimed to be far from surprised with the survey’s results.
He said: “It is no surprise that with inflation well above expectations, rising taxes, university debt growing by the year and mortgages much more unaffordable than before the credit crunch, young people are more and more desperate for a financial helping hand from their parents.