Parents and grandparents pass on £293m to kids
Parents and grandparents have amassed a £293m warchest to pass on to the younger generation.
Children and grandchildren are in line to receive an early inheritance of nearly £9,500 each from older relatives, with 60 per cent of them planning to give the gift before they die, according to a new study from financial network The Openwork Partnership.
The cash is intended for big purchases such as “paying off student debt or helping with a house deposit” says the survey.
Some children and grandchildren can look forward to bigger pots, with 11 per cent of parents and grandparents planning to give more than £25,000 each.
Just under a year of the Covid-19 pandemic has not hit plans of the older generation to pass on their wealth, with just 6 per cent of parents and grandparents worried they may have to cancel their plans.
In fact, more than one in five, or 22 per cent, of parents and grandparents say they plan to give more or give the money earlier as a result of the health crisis. Although, 18 per cent say they have cut the amount of the planned pay-out or will delay the gift.
However, not all children and grandchildren can bank on an early inheritance with 27 per cent of parents and grandparents – around 8.5 million people – not planning to give anything.
The Openwork Partnership chief commercial officer Mike Morrowat says: “The sheer size of the amount that parents and grandparents plan to give as early inheritances shows how important intergenerational wealth transfers are in the economy.
“Average gifts per child or grandchild of nearly £9,500 are significant and £293 billion makes a major contribution to the wealth of younger generations.”
The online survey was conducted among 1,280 adults, including 760 parents and grandparents by independent researchers Pure Profile in December.
