One in five savers say they depend on a generous inheritance to maintain their quality of life
One in five savers depends on a generous inheritance and fears for their quality of life if they don’t receive a payment, according to research.
Millions are relying on a parental windfall to ensure a comfortable future, according to Lime Solicitors. But a growing number could find it difficult to retire if they have little left, the law firm warns.
As people live longer and costs rise, family members may use more of their savings, and care costs could erode a legacy.
Millions of savers are relying on a parental windfall to ensure a comfortable future, and a growing number could find it difficult to retire if they have little left, according to Lime Solicitors.
Nearly half of those surveyed by the law firm expect to receive an inheritance, even though only a third have discussed the plans with family.
Debra Burton of Lime Solicitors says: ‘Inheritance has become one of the only guarantees many feel they can trust to achieve the same quality of life as their parents.’
But the difference in expectations, dubbed the “inheritance gap,” could cause surprises.
The amount left to the family can also be affected by inheritance tax. A 40 per cent tax is charged on estates above the £325,000 threshold, rising to £500,0000 when the property is left to children or grandchildren.