A study conducted between 2008 and 2010 has found that the biggest benefactors of inheritances are self-employed women aged under-65 who already have wealth of their own. Which stands the majority of the population in good stead to inherit…or perhaps not! Here at Prestige Tax and Trust Services we were all fascinated to find out what else the study found and thought we’d share the facts and figures with you too!
Though the data doesn’t capture current trends, it is the most up to date snapshot of inheritance in Britain. Findings suggested that just 4% of adults received some kind of inheritance in this time and that the figure totalled a whopping £75 billion. Average inheritances were relatively small, however, with half of all inheritances coming in at £10,000 or less. Around 1 in 10 inheritors was left £125,000 or more. The figures suggest that around 100,000 people each year are bequeathed more than £125,000.
The study also found that the top 20% of inheritances with the biggest values accounted for almost three quarters of the entire £75 billion figure. While ownership of property has, over the years, increased with rates going up from 23% in 1918 to a peak of 69% in 2001, most estates were left in the form of cash savings, with just 1 in 5 involving land and/or property.
Since people are living longer nowadays, they are relying more on their savings later in life, which could account for reduced inheritances in future. More people are also giving away wealth while they are still alive, often to avoid inheritance tax, or to help relatives buy property. Inheritance tax has continued to rise year after year. The last tax year saw £3 billon was paid; a 7% increase on the previous year.
Families are being urged to plan carefully for the future, especially if they want to be able to leave something behind for their loved ones. Visit our website for more advice, or read our previous blog on the subject.
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- Inheritance In Great Britain, 2008/10 (economicvoice.com)
- Want a big inheritance? It helps to be female, self-employed – and wealthy (telegraph.co.uk)