Bank of mum and dad continues until death

by Sarah Ashcroft

One in six parents plan to make a will that will leave their children a lump sum payment, a new survey reveals. The research from Legal and General shows that not only do mums and dads plan to leave money to their kids when they die, but many also believe they will spend their lives supporting their offspring.

More than a quarter (27 per cent) of parents thinks they will never stop financially supporting their children, according to the survey. Only one in five (21 per cent) believe they will stop supporting their children at 18.

On the other hand, some parents are keen on instilling financial independence, with more than ten per cent of parents saying it is simply no longer their responsibility after that age.

But with one in six parents expecting to leave a lump sum to their children, it is important that they look into making a will to ensure their wishes are adhered to. It is also vital for the children to talk about inheritance with their parents, as another study indicated.

A recent NS&I survey revealed that while a quarter of adults in the UK say they will rely on an inheritance to help in the future, just seven per cent have discussed the matter with their parents.

Despite 16 per cent of parents planning to leave their children money, figures indicate a worrying number of people still without a last will and testament. According to Standard Life research, more than half of British adults do not have a will drawn up, while over a fifth (22 per cent) of over-65s do not have a will.

Julie Hutchison, head of estate planning at Standard Life, explains that failing to draft a will properly can prove costly in the long-term. "The legal fees in untangling estates when someone dies without a will can be higher and the inheritance tax bill could be higher, not to mention the stress for the family and potential delay in distributing assets," she says.

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Published on: December 1, 2011

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