"We would encourage everyone to break the taboo and have open conversations with your loved ones about your financial circumstances and inheritance plans."
- Stacey Love, tax and estate planning specialist at Canada Life
The majority of UK adults (56%) who received an inheritance sum over the past five years did not discuss its value with the benefactor beforehand, according to new research from Canada Life.
Nearly a fifth (17%) of UK adults have received an inheritance within the last five years, at an average value of £35,000. Yet for over half of those (56%) - the equivalent of 5.1 million people - this sum came as a surprise.
Only 12% of those who have received an inheritance sum knew the exact amount they would receive. Nearly a third (31%) said they received more than they were expecting, and 26% received less.
When it comes to spending, or planning to spend the money inherited, a third (33%) said they have or will put it into a savings account.
Other top responses included investing for the future (19%), paying off debts (15%), renovating a property (14%), travel (12%) and gifting the money to children or grandchildren (12%).
Stacey Love, tax and estate planning specialist at Canada Life, commented: “It is understandable that many people shy away from talking about inheritance. However, not having these important conversations means that those who are receiving can be caught by surprise when the time does come.
“We would encourage everyone to break the taboo and have open conversations with your loved ones about your financial circumstances and inheritance plans. Being open about your wishes and discussing any potential unexpected costs that may arise in the coming years, such as care costs, allows you and your family to take control and make necessary financial arrangements now that will help to ensure that you’re in good stead for the future."
