Over the New Year, Think Tank the Resolution Foundation issued a report which said that the generation known as the Millennials (people born between 1981 and 2000) will receive a greater inheritance from their parents than any other post-war generation. Dubbed the Millennial “Inheritance Boom” by the media, the Foundation predicts that inheritances will double over the next 20 years due to the rise in home ownership, meaning a much greater percentage of young adults will receive a share of property when their parents pass away.
However, that is where the good news ends for Millennials with regards to inheritance. The average age at which people lose both parents is increasing and therefore Millennials are likely to be of pensionable age before they inherit, rather than middle-aged when outgoings tend to be higher.
The report also failed to take into account the increasing need for care amongst elderly people which without further reform could significantly reduce the size of the inheritance received as many elderly parents liquidate their assets to fund care costs.
The need for proper Estate Planning
Forward planning is the key, and drafting a Will is easier than you think. Estate Planning will give you the reassurance that when the time comes, your money will go to the right people and prevent your assets being swallowed up on care fees and other costs – see our article on What Happens When You Don’t Make A Will.
As well as drawing up your Will you should also give some thought to implementing a Lasting Power of Attorney so that you can control important health and financial decisions in the event you become incapacitated.
For advice and assistance on Wills, Trusts or Powers of Attorney please contact our Private Client department today. Our expert Solicitors have a wealth of experience and will carefully consider your circumstances to ensure that your Will protects your accumulated wealth to pass on to your beneficiaries. Whether you are making a Will for the first time or updating an existing one, we can help.
The Backhouse Solicitors Team
Tel: 01245 893400