Don't rely on your inheritance money

Don't Rely on your inheritance BRITS RELYING ON INHERITANCE MONEY 111111111 4 IN 10 Brits won't get any inheritance according to research from Skipton Building Society. 49% 49% of parents aged 50 or over have already had to use their savings, and 4 in 1O 50+ have already given money to their children to help them pay essential bills and fees. The building society studied 2,000 adults and found the average £78,000 person expects to inherit around £78,000 from their parents. Stacey Stothard, corporate communications manager at Skipton Building Society said: "The sad reality is when times are tough financially for them, they're also tough for their parents, so it comes as little surprise that many have had to dip in to chunks of their savings to get by." One fifth One fifth of people over the age of 20 are relying on their parents' money to solve their financial problems. 68% 67% 54% expect to inherit their parents' 67% think they'll receive a large cash sum. aren't making any financial plans for a comfortable house. retirement. 20% 20% are hopin to use are counting on their parents' their inheritance to get them on the property ladder. money to get them out of debt. 15% say they will need it to put their own children through university. 25% hope they can pay off their mortgages with inheritance money. £££ 70% of adults aged 50 or over stated that they think it is better to spend money now, as and when their family needs it. 70% 97% 57% 95% of adults aged over 50 said that their 57% of adults aged over 50 said that they know their children are children need to become more responsible for their own future. expecting to receive an inheritance. Inheritance Facts When a person dies without leaving a valid will, their property and possessions must be shared out according to the rules of intestacy. Married or civil partners nd close relatives can inherit under the rules of intestacy. JOINTLY-OWNED PROPERTY There are two ways that couples can jointly own their home - beneficial joint tenancy and tenancy in common. With beneficial joint tenancy agreements, the surviving partner would automatically inherit the other partner's share of the property. If the partners are tenants in common, the surviving partner does not automatically inherit the other person's share. INHERITANCE TAX £325,500 Inheritance Tax is due when a person's property and possessions are worth more than £325,000 when they die. 40% 36% 10% The rate of The rate may be if more than 10% Inheritance Tax is reduced to 36% of the estate is 40% on anything left to charity. above the threshold. Gifts that are made in the 7 years before the person died must be added to the value of the estate to work out if Inheritance Tax is due. But any debts, bills and funeral expenses are deducted. Where Parent's savings might go: Percentage of fathers who still pay for wedding A large percentage of parents' savings often get spent on their son's or daughter's wedding. Research from John Lewis Insurance states that 52% of Britons would expect to pay for their wedding themselves. 9% 58% 46% The study revealed Compared to 46% of Just 9% would that 58% of women men. expect the bride's wanted to take parents to pay for financial the total cost of responsibility for their wedding. their wedding Percentage of parents who help with university fees The cost of putting a child through 3 years of higher education is now more than £53,000, including rent, food, clothes, entertainment, books and tuition fees. years Research in 2011 concluded that 1 in 5 parents will work overtime to help with costs. 15% PLAN TO TAKE A SECOND JOB to Spiralling cost of raising a child In the future parents may struggle to leave their children any inheritance. The Money Advice Service's baby costs calculator indicates that a baby can cost between... £1,565 & £7,270 in the first year alone. With the increasing costs of running a home, parents may struggle to put away savings for themselves and their children. SOURCES http://www.skipton.co.uk/press_office/ http://www.adviceguide.org.uk/england/relationships_e/relationships_death_and_wills_e/ who_can_inherit_if_there_is_no_will_the_rules_of_intestacy.htm https://www.govuk/inheritance-tax/overview http://www.huffingtonpost.co.uk/2012/08/26/wedding-tradition-brides-parents-not-topay_n_1831005 html http://www.telegraph.couk/finance/personalfinance/investing/9222673/How-to-fund-school-anduniversity-fees html http://www.schoolfeesadvice org/ http//www.newsroom.hsbc.co.uk/press/release/one_in_ten_parents_will_not_he http//www.moneysupermarket.com/c/news/the-true-cost-of-raising-a-child/0013820/ TM MoneySupermarket com 8