The insurer says this situation represents a “challenge” to the UK financial advisory industry.
Desire for children to inherit, but no will in place
Opinium questioned 4,000 parents with children of any age about their plans for transferring their wealth on behalf of LV=. The study found that while 88% of parents said they wanted to leave money to their children or grandchildren:
- 59% of all parents hadn’t written a will
- 72% of parents with children under 18 hadn’t written a will
Is the lack of people seeking advice also a concern?
As well as discovering whether parents had written a will, the survey also sought to determine how many people had sought financial advice about estate planning issues.
LV= found that just 13% of parents had spoken to a financial adviser about transferring their wealth, with another 44% saying they were considering it.
Interestingly, older generations were less likely to have sought or be considering seeking financial advice. Just 12% of over 65s had already sought estate planning advice, while only another 22% were considering doing so.
LV=’s report noted: “It’s a challenge as an industry to find ways to prompt parents into action to ensure they don’t put it off for too long, and look after the interests of their children should they pass away.”
People consider trusts but do not take action
LV= also explored the issue of trusts, finding that while there was good knowledge of this option, with 56% of parents considering writing their assets into a trust, only 12% had done so.
What are the consequences of a lack of estate planning?
Not giving estate planning the attention you should can have a raft of potential consequences, not least:
- Raising the potential for disputes among your family after your death
- Meaning your wealth and assets won’t be distributed per your wishes
- Beneficiaries end up with a much higher Inheritance Tax bill than might have been the case
You can help your family avoid all these situations after your death by giving due attention to your wealth and estate planning now.
View the estate planning services LawPlus Solicitors can help you with here, or contact us here if you’re ready to speak to someone about what you need.