Planning to leave a family legacy

Planning to leave a family legacy | Influence of the coronavirus (COVID-19) on decision-making

We are currently living in the grip of a global coronavirus pandemic (COVID-19) in extraordinary times. Many people are concerned that their affairs are in order and that they have made a will which is one of the most important legal documents you can make in life.

It always makes sense to have a valid will to ensure your estate is shared among the people (or charities) you wish to receive. The coronavirus outbreak has given many people further impetus to get their affairs in order, and a valid will is especially important if you have underlying health problems or are elderly.

Must discuss Wills and inheritance

Families are becoming more open to their finances, and the COVID-19 crisis underscores the need to discuss wills and inheritance. A study conducted at the height of the pandemic shows that the pandemic has encouraged more people to make wills (1).

A third (33%) of people in the UK have either drawn up a new will or changed an existing one due to the global health and humanitarian crisis we are facing. Research shows that this also has a broader impact, making families more open to their finances. Almost four in five (78%) believe the pandemic will spark more inheritance planning talks in their families.

Complex family constructions the new normal

The pandemic has not spurred everyone to act: More than a fifth (22%) of those surveyed say they have no will and do not plan to work out one. Worryingly, around one in ten say that this would be a tempting fate.

Families can face major problems if there is no will, especially as complex family compositions are increasingly becoming the new normal. Almost one in seven (13%) families in the UK now has a stepson, stepdaughter and / or adopted son or daughter as part of their family. And a fifth (21%) of parents have been involved in two or more romantic relationships that have resulted in their being legally responsible for children to whom they have no biological connection.

Significant Impact on Estate Planning

An outdated will can be challenged, which could encumber a family's estate. This is especially relevant as only 27% of adults are confident that their current will is unlikely to offend relatives. Almost half (49%) of those with a will have never rewritten or changed it. Only 24% have changed their will once, 16% have changed it twice, and only 5% have changed it three times.

Growing concerns about the health of the marriage also have a significant impact on estate planning. The study also found that more than two-thirds (67%) of parents have chosen to postpone planning the family inheritance for fear that their children's marriages will end in divorce and the likelihood of property and fortune leaving family property.

Reduce the significant wealth that leaves the family

In fact, a quarter (27%) of parents have little or no confidence in their children's prospects of lifelong marriage, and one in six (16%) has doubts about the financial competence of their parents-in-law. The results show that these concerns are not unfounded. More than one in four parents (27%) have children who are separated or divorced.

In order to reduce a significant amount of wealth that leaves the family in the event of divorce, one fifth of parents (21%) give small amounts to their children to make daily life easier, while 19% give direct to their grandchildren. Parents have other reasons for limiting financial support: 13% of parents say this will reduce their children's incentive to work, and 12% believe that there is little left for their grandchildren.

Protect your wealth for future generations

The majority (83%) of those interviewed for the study said that experiencing the coronavirus pandemic will encourage people to manage their financial affairs and encourage them to make new wills. A will is one of the most important legal documents you can create in life as it is designed to protect your financial assets after your death. For more information, contact us to discuss your estate planning needs.

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Source data:

(1) Research by Consumer Intelligence for commercial banks in April 2020 with over 1,000 respondents

INFORMATION BASES OUR CURRENT UNDERSTANDING OF TAX LEGISLATION AND REGULATIONS.

ALL LEVELS, BASICS AND RELEASES OF THE TAX ARE SUBJECT TO CHANGE.

THE RULES ARE COMPLICATED FOR THE SAKE, SO YOU SHOULD ALWAYS RECEIVE PROFESSIONAL ADVICE.

    Planning to leave a family legacy | Influence of the coronavirus (COVID-19) on decision-making
Planning to leave a family legacy | Influence of the coronavirus (COVID-19) on decision-making

Planning to leave a family legacy | Influence of the coronavirus (COVID-19) on decision-making





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