A recent report published in MoneyAge suggests that nearly half (43%) of UK adults don’t intend to split their wealth evenly between their children on death.

Estate planning isn’t easy and there are many things to consider when deciding how you’ll distribute your wealth.

While a 50/50 split might seem like the fairest choice, there are reasons why you might choose not to pass on your wealth in this way.

Keep reading to find out about the hidden factors you’ll need to consider, and how Expert Wealth can help you decide on the best approach for you.

Nearly half of UK adults will split their wealth unevenly between their children

Estate planning is a difficult juggling act. You’ll want to use your hard-earned wealth to provide your dream retirement, while also holding back some funds for later-life costs like care and providing an inheritance for the next generation.

Managing potential Inheritance Tax (IHT) liabilities, as well as pension thresholds and allowances, isn’t easy. Thankfully, at Expert Wealth, we have a team of dedicated professionals who can help.

An up-to-date will is the best way to make your wishes known – it’s why we always stress the importance of having one in place. But first, you’ll need to think carefully about what your wishes are.

If you’ve yet to give it much thought, you might be working on the presumption that – when you get round to it – you’ll decide to pass on your wealth equally between a partner and your children. This might not be the right option for you.

Individual inheritors have their own needs and levels of pre-existing wealth

Splitting your wealth equally between your children might seem natural. Doing otherwise might feel unfair or seem like favouritism. But your grownup children are individuals, likely with their own families, their own bills to pay, and separate lives. These different lives will mean your children have different needs and desires.

Of those surveyed, the two main reasons given for not splitting their wealth evenly were:

• A desire to make their children financially equal
• Wanting to help the least successful child.

Both of these reasons are perfectly valid but the decision may still cause friction within your family. Thankfully, there are a few simple ways to keep disagreements to a minimum.

How to navigate the “sibling minefield”

1. Understand your children’s feeling

As with all decisions involving others, communication is key. You need to be selfish, making a decision that is right for you while taking the feelings of all other concerned parties into account. Only once you’ve made a decision that you are happy with will you be in a position to communicate it.

The recent survey found that more than a third (37%) of UK adults would be upset if they received less of an inheritance than their siblings, while less than a quarter (24%) wouldn’t mind.

Think carefully about the decision you make, the reasons behind it, and the potential issues attached to it. This will allow you to understand your motives, form counterarguments, and hopefully head off any disputes when you come to communicate your wishes.

2. Communicate your wishes

Just one in five (21%) of UK adults surveyed confirmed that their family had talked openly about inheritance. Family disagreements can lead to stress at an already difficult time and in some cases could even lead to a will being contested.

A Which? report from July 2021 found that unexpected pandemic deaths, combined with increasingly complex family structures and an ageing population had led to increased issues surrounding wills. One law firm experienced a 111% increase in enquiries about contesting a will between October 2020 and April 2021, compared with the previous six-month period.

Communicating your wishes is key to ensuring all parties respect and understand your decision and that your wishes will be upheld.

3. Have confidence in your decision making

Interestingly, the survey found that 39% of respondents either had or would actively attempt to boost their inheritance.

Of those looking to curry favour, 13% had used regular visits to parents as a way to increase their chance of inheritance, while 7% had, or would consider, moving closer to their family home.

Understanding the reasons behind your decision and communicating it effectively will allow everyone to have confidence and respect for your wishes.

Get in touch

With decades of experience in financial services, our Chartered financial planners have the expertise to help you and your loved ones make the estate planning choices that are right for you. If you have any questions, please get in touch and speak to us today.

Please note

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.