A study has found that there is a lack of inheritance planning across the UK, with a significant number baby boomers unclear on how to set about wealth transfer planning.
Research from Progeny has revealed just 3% of people had been found to have employed a financial adviser to structure their wealth transfer plans.
The research, which was carried out with YouGov, interviewed over 1,000 people across the country.
The findings also discovered that only 17% of Baby Boomers had a plan to leave money in their inheritance, despite 60% stating they wished to do so.
Neil Moles, CEO of Progeny, commented that although passing money down to the next generation is an “ambition for many”, the findings showed a “stark lack of any structured planning in evidence”. He added:
“This creates risk and missed opportunities for those on both sides of the wealth transfer.”
In addition to this, 18% stated that their own lack of inheritance tax knowledge and lack of inheritance planning were significant obstacles when thinking of passing money down.
A significant amount of younger generations (41%), such as Milennials and Generation X interviewees, said they found it “uncomfortable” to discuss inheritance with their parents.
Only 58% of Baby Boomers said they have discussed inheritance or gifting with loved ones.
Of those who expected to received an inheritance, 38% did not know how much they would be receiving.
Moles concluded:
“We have an opportunity to reconsider inheritance and intergenerational wealth transfer planning as a responsibility for both generations to share – those who are giving and those who are receiving – bringing clarity and peace of mind to both.”
