Increase in pre-death inheritances


New figures released by Skipton Financial Services (SFS) suggest that there is an increase in the practice of parents giving their intended inheritance to their children before they die.

One in five people living in Britain are thought to have already received a cash gift from their parents, and it would appear that the premature inheritances are being given at the request of the children, as opposed to some novel way to beat inheritance tax. The money is thought to be largely requested in order to use as a deposit on a house purchase, or to pay off debts that have come about as a result of continued unemployment, university fees and weddings, among other things.

The result of course, for those who have already received an early inheritance, is that their parents will have little to nothing left to bequeath them in their Will for when they actually do die. The figures show that 26 per cent of under-35s will have received at least £50,000 cash from their parents, with 10 per cent having received over £100,000.

Parents should still however be sure to make a Will, even if they feel they have gifted most of their belongings in their lifetime, as most will still own their home at the time of their death, and there is also the possibility that they will come into new wealth that would need to be accounted for in a Will expressing their wishes. Dying without having a Will in place can result in a greater amount of inheritance tax being paid out of the estate, and can also lead to long delays in assets being handed over.

If you live in Northern Ireland and would like to receive a free information pack about writing a Will, contact Wilson Nesbitt solicitors in Belfast or Bangor by email at estates@wilson-nesbitt.com .




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