In the UK, £1tn is expected to change hands in the 2020s alone as the Baby Boomer generation tries to protect, and pass on, its assets to a younger generation.
Favourable financial conditions between 1946 and 1964, mean that those born during that period (approximately 16.8m people) are the wealthiest generation in human history.
They hold around 80% of the UK’s wealth and as they enter the latter stages of their life, with the average person passing away at just over 80 years, they are looking to move their financial gains between the generations, in what will be the largest wealth transfer in history.
Private client solicitor Sherelle O’Brien looks at estate planning tips for the Great Wealth Transfer.
Transferring wealth between generations can be a tricky task with people being forced to make decisions about investing and inheritance.
Things to consider:
- Baby boomers are largely intent on staying in their homes, often until they pass away. Therefore, a significant number of baby boomers still live in family size houses, held by their owners for decades.
- The generation set to inherit this wealth will already be reasonably established, with their own homes and grown children, so could potentially bring their parents’ homes to market, further driving property values and transactions.
- Interestingly, women are expected to inherit a significant portion of this wealth, as they tend to live longer than men, and often take charge of family finances after the death of a spouse.
What to do next?
Proper estate planning, including well-drafted wills and open discussions about inheritance, is crucial to avoid legal battles and ensure wealth is distributed according to the benefactors' wishes.
With the increasing complexity of family structures, including blended and estranged relationships, these discussions are more important than ever.
Make a Will
Research shows that around 67% of UK adults either don’t have a will or have one that’s out-of-date.
Why have a Will?
It makes sure your assets go to the intended people – whether that is money, property or your favourite possession.
Keep it up to date
It needs to reflect your current wishes, and you should review it every three years to reflect changes in relationships and children.
Use a regulated and insured solicitor
We offer support and reassurance to draw up your legal documents properly.
What is stopping you from making a Will?
Many people cite costs, time, emotions or concerns about the process as the reason why they have not made a Will. We can guide and support throughout the procedure.
Your next move?
If you are concerned about how your wealth will be passed on, please talk to us about future estate planning.
For further information please contact Sherelle O’Brien at Wake Smith Solicitors on 0114 224 2070 or email [email protected]
