While not distributing their estate evenly is something 4 in 10 parents are thinking about, you should also consider how your decision could affect family relationships and whether it could cause conflict.
37% of UK adults said that they would be upset if they received less from an inheritance than their siblings. Just a quarter (24%) said they would not feel anything if this happened. Being proactive can help to minimise potential conflict, so speaking to your children about your decision and why you’ve made it can help them understand your thought process and reduce conflict.
Being open about your will and what you will leave behind can also help your children have more confidence about their future. It can be a difficult discussion to have, but it can help make sure your family is on the same page.
Once you’ve put an estate plan in place, including writing your will, it’s important to set out regular reviews. Over your lifetime, your assets and wishes can change.
Some assets, like your property or investments, may increase in value during your life. Others, such as the assets you use to create an income in retirement, will deplete. These changes may affect what you leave behind for loved ones and could change how you want to pass assets to the next generation. Keep in mind some things outside of your control can also have an effect. For example, if you need care or support later in life, you are likely to need to cover at least some of the costs, which can have a significant effect on the value of your estate.
Your wishes may also change over the years. Perhaps welcoming grandchildren will mean you want to set something aside for them, or you may decide to support a charity with a charitable legacy. By regularly reviewing your will, you can ensure it continues to reflect your wishes and circumstances.
If you’re thinking about how you’d like to pass assets on to loved ones, please contact us. We can help you understand the value of your assets and what your options are.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate will writing, some aspects of tax planning or estate planning.