Estate and End of Life Planning
15 Dec 2020
25% of consumers take estate planning actions
Only 25% of consumers have undertaken any of the actions normally associated with estate planning, like making gifts to loved one, gifting a home to children etc. This is less than the 35% which have made a will: for almost half of consumers estate planning is associated only with making a will. Consumers who have taken any estate planning action tend to own estates which have a much greater value compared with consumers who have not acted: in other words, wealthier consumers are more likely to have acted compared with less affluent consumers.
Tax-free gifts the most likely estate planning action taken
The most common action undertaken is making tax-free gifts to another person or charity / political party like money, property and possessions. Around half of the individuals making a gift were motivated to do so by a desire to cut their inheritance tax bill or reduce their eligibility for social funding. The second most common action undertaken is gifting a home to your children, with most consumers doing so to cut inheritance tax and social care costs. Very few adults have set up a trust for their children or taken out a lifetime mortgage in order to cut their potential inheritance tax liabilities or liability to pay for social care costs.
Estate and End of Life Planning Report
These findings come from the IRN Research report Estate and End of Life Planning 2020. The report studies the degree to which consumers in the UK engage in estate and end of life planning. Estate and end of life planning involves consumer actions to pass on their wealth to their loved ones and other people who matter in a way which is most effective in terms of inheritance tax, their own financial situation as they age, provision for loved ones after their death and where and how their passed on wealth can be spent. The research is based on a survey of 2,093 consumers using MIS Group panel of UK consumers.
The report (73pp, PDF), is available directly from IRN Research
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