How to talk to your family about inheritance
Talking to your family about inheritance can be difficult. Discussions about money or death aren’t easy to have, so it’s not surprising many people avoid them.
For children it’s not nice to have to think about the passing of your parents, let alone discuss it with them. For parents, it can feel uncomfortable sharing your wishes and details about your finances with your children and other beneficiaries.
However, staying silent on the topic can be extremely costly. Talking with your family can ensure that everyone is clear on your wishes when the need arises.
Creating a Will
Creating a Will is the best way to ensure your wishes are clear. However, over half of the UK population do not have a Will.
Even if you do create a Will, discussing your wishes with your family will help to make sure everyone is clear and could help to reduce the risk of any surprises or arguments further down the line.
Recent research highlighted that 58% of UK adults find the subject uncomfortable and nearly one in five don’t believe they have enough assets to seek estate planning advice.
Rising value of estates
With rising inflation, this assumption can be a costly one. Property usually makes up a significant amount of the value of an estate. The current figures show UK house prices have risen at the fastest rate in 18 years during the last month.
A typical property costs nearly £300,000. With the nil-rate band for Inheritance Tax frozen at £325,000, many estates will be facing an Inheritance Tax bill. This can come as a surprise for families that haven’t considered this and made provisions to cover this expense.
Nicholas Partington, Head of Broker at Tower Street Finance said: “It’s so important for families to talk about inheritance. This shouldn’t be viewed as a taboo conversation, but a necessary discussion to ensure your loved ones aren’t faced with nasty surprises and costly bills.
“Having this discussion nice and early means you can take the steps needed to create your Will and get your financial affairs in order to reduce the risk of arguments and financial issues when the time comes.
“If you are in need of financial support to settle Inheritance Tax, pay legal or administration fees or just simply want to access your Inheritance quicker, we can help.”