Lack of wills could hit £5.5trn UK inheritances
More than half of people who have some financial responsibility for others (57%) have failed to write a will.
Even those who have a will in place have not updated it in the last five years, according to new research.
Quilter, who commissioned the research, warned that unless more people write and update their wills, finances will be left open to challenge when people pass away.
Its survey revealed that the majority - 53% - of people with a will have not updated it within the last five years, with a further 14% never having updated it at all.
Some 16% of those aged over 55 have never updated their wishes.
Meanwhile, one in four said they would be willing to contest someone else’s will if they felt the estate had not been divided fairly.
The lack of planning could be crucial with the Kings Court Trust calculating that £5.5trn will be passed between generations in the next 30 years.
The research also showed that when gifting money, an important aspect was ensuring the right people in the family receive the money, with three quarters - 73% - citing it as important. Ensuring recipients save tax was another key aspect, with just over half of respondents - 55% - stating it was important.
The research also found that 45% of people have never or will not speak about pension death benefit nomination, lasting power of attorney or a trust with their family, again leaving their wishes undetermined.
Rachael Griffin, tax and Financial Planning expert at Quilter, said: “Encouraging conversations about money and inheritance between family members is the major theme that has emerged from this research. The vast majority see the right family members receiving the money as an important aspect of gifting.”
She said that having discussions and ensuring documents are kept up to date will ensure that vast sums of money that are due to flow through the generations will do so in the intended way.
Inheritance tax receipts for the current tax year to-date have reached a record £5.3bn, according to the latest figures published by HMRC.
The figures suggest IHT receipts are on track to hit a new record this tax year, topping last year’s £6.1bn.
• The research was conducted by YouGov between 9-15 November with a total sample size of 2,176 adults.
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