The old saying goes that ‘home is where the heart is’ – and, for some adults these days, that home might still include their parents.
The idea that we should have our own place by a certain age has existed for a long time, but it is not uncommon for individuals to remain in their parents’ homes well into their adult years. For instance, according to the Office for National Statistics, 3.6 million people between 20 and 34 were living at home with their parents in 2021.
A range of factors could be behind such trends, but – in some cases – it might just make financial sense for the family. However, it is important to note that such living situations could have an impact on inheritance and estate administration matters if the parents were to pass away.
Several scenarios could arise, but Tower Street Finance may be able to help with some of them.
1. Inheritance tax bills
Unless succession planning is in place, the children could be hit with an inheritance tax bill when their parents pass.
This could cause issues as they would not have their own home to raise funds against, while they cannot access assets in the estate until the inheritance tax is paid. It is also worth remembering that the latter enables grant of probate to be issued, and even then they may still be waiting some time until they can get funds from the estate.
Fortunately, Tower Street Finance can help with its Inheritance Tax Loan in this situation. The loan can be used when there is a liability to pay the tax but no funds available.
2. Maintaining property
Another potential issue could arise if the children need to maintain the property during the probate process but don’t have the funds to do so. This may turn out to be an unexpected expense but, again, Tower Street Finance could provide support.
Estate Expense Funding is designed to help those who cannot fund costs linked to estate administration. It can cover issues like professional fees and property repairs/maintenance.
Finally, family life is rarely straightforward and inheritance disputes are common. If siblings have been living with parents, there may be some friction and this could go on to create disagreements around the estate distribution.
Tower Street Finance’s Inheritance Dispute Funding can cover the legal costs of such a dispute, with the loan then being repaid by the estate.
Dicky Davies, Director of Business Development at Tower Street Finance, said: “While living at home with parents might make sense in many situations, it is worth considering the potential issues that could arise further down the line.
“Inheritance and estate administration are complicated areas and they can create a lot of stress. However, our products should hopefully provide support and peace of mind if you do face issues.”