children and inheritance.

Its not even remain screwed.   Its get more screwed 

Posted by: thecaptain

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The older generation got lucky breaks and the younger generation are screwed, but the solution isn’t for a small proportion of the latter to get huge unearned windfalls while a large proportion get sweet FA and remain screwed. 

I agree, but inheritance tax remains unpopular so it’s unlikely to change.

well, shes only 27, pressumably your mate is in his 60s/early 70s.

assuming hes in good health, shes got a couple of years to become a nicer a person.

Posted by: tjagain

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Inheritance keeps wealth in the hands of the wealthy.  I'd like to see it taxed much more heavily 

 

Why are you leaving more money to your nephews then? Sound like they will do OK anyway when your parents no longer with you.

Leave that 1/3rd to charity.

Posted by: elshalimo

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Regardless of housing markets, cost of living etc. etc., why does the child think that they are entitled to the parents' money/estate? They didn't earn it, they didn't do whatever the parents did to acquire the wealth etc.

But that's the main reason there is so much wealth contained in the older generation. My parents bought their house in the mid 80's for £40k or so. Parents are divorced now but the house is long paid off and my Mum has a house worth £1m at current rates.

However, she's asset rich and cash poor (OK, not "poor" but not exactly rolling in cash).

She's not "earned" that asset, it's just luck, timing, etc and many people will never have that same opportunity.

Potentially the father chose to exchange having a good pension for providing for the daughter during her formative years and providing a larger, warm and safe home along with providing the daughter with other tangible benefits via spending/offsetting a pension.

The family home is no longer needed and so the father can convert the house into money to fund his retirement that the pension may otherwise have.

This has allowed them to both benefit from the fathers "wealth" at appropriate times. The daughter may still inherit a reasonable sum however in either case there are still future risks of care costs depleting the estate and consideration to the inheritance tax thresholds.

The daughter being upset that her father is hoping to make his retirement easier speaks volumes. One might imagine that the daughter and any future grandchildren may benefit from a father/grandfather who has the means not to be a liability and who has the opportunity to provide ongoing positive interaction in their lives

Posted by: Kramer

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Posted by: thecaptain

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The older generation got lucky breaks and the younger generation are screwed, but the solution isn’t for a small proportion of the latter to get huge unearned windfalls while a large proportion get sweet FA and remain screwed. 

I agree, but inheritance tax remains unpopular so it’s unlikely to change.

Only because our media is owned by people who don't want to pay it and our general population is too stupid to realise they won't pay it.

Timely article regarding stereotypes of older folk criticising "depictions of baby boomers - those born between 1946 and 1964 and now in their 60s and 70s - as either frail or enjoying a life of luxury at the expense of their children and grandchildren."

https://www.bbc.co.uk/news/articles/cvg1e75ddygo

The report they refer to

https://committees.parliament.uk/publications/46686/documents/239426/default/

My parents were useless with money, so those of you with the option to downsize and spend the extra crack on I say. 

I will finally own my own house outright in a few (5ish) years, but have no kids, which is weird, have a niece&nephew though. 

My parents are busy enjoying themselves. The in-laws didn't get the chance with MILs poor health and then needing the funds in the house value to pay for nursing home care for three years.

I'm not expecting any inheritance nor am I leaving a big pot for anyone (my kids). They can have the house if neither of us end up needing to pay for care homes.

My sister lives very well off her husband's inheritance as his dad and mum died relatively young. Cash and a four bed house. 

Reading some of the replies, you'd think the vast majority of people in their 60s, 70s and older live in million pound houses when the reality is that most are in property worth less than £300k (The average UK house prive being £270k)

If either of my daughters had reacted as the OPs friends did I'd be mortified that in the previous 27 years, we'd not had meaningful conversations about money, inheritance etc. We made the conscious decision to give our daughters a chunk of cash when they were in their early to mid 20s figuring that we would have far rather had a smaller amount in our 20s than a 'proper' inheritance in our 50s or 60s. There were no strings attached but we knew they both wanted to buy their own homes...which they did. My parents are both gone, we got a small inheritance as most of the house money and modest savings went on care home fees which we do not begrudge at all as mum had a fulfilling last few years rather than staring at her own four walls while we waiting for a bit more cash...no thanks ! 

Reading some of the replies on here reminds me of the quote "Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times".

My kids will get help as and when I can but it won't be a given. If I had the conversation like the OP, I'd be updating my will to leave my money to the guide dogs trust.

My mums burning through it at a rate of knots, and good on her! My stepdad died just a few years into (thankfully, early!) retirement.  She's spending it on good times, and can't complain about that. She's taking the whole family on holiday next year because that's what she wants to do.

She is still in the house we grew up in but we're down there a fair bit and use the rooms, although they do refer to their bit of the street as widows row, as there's a load of old single boomers in 4 bed semis.

Me and my brother are over 40 now, decent jobs and all that so just hoping that mum hangs about as long as possible in good health! My bro and I are already set up with LPOA just in case things go south with her faculties, but no signs of that so far and we're all pretty well appraised of eachothers situations. Communication is king in these things.

Is it now the case that parents are leaving inheritance to their grandchildren and not their own children? This was never the case before. But I'm sure most receiving parties would share any gains with their relatives anyway.

A couple of my friends have ended up with nothing as care home costs are so high. It's best not to expect anything then it won't be a shock.

Posted by: Thepurist

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Timely article regarding stereotypes of older folk criticising "depictions of baby boomers - those born between 1946 and 1964 and now in their 60s and 70s - as either frail or enjoying a life of luxury at the expense of their children and grandchildren."

https://www.bbc.co.uk/news/articles/cvg1e75ddygo
/p>

The report they refer to

https://committees.parliament.uk/publications/46686/documents/239426/default//p >

Imagine the outrage on social media if a labour government released a report criticising older people for stereotyping younger people, as they often do with regards to spending money on avocado on toast, "fancy iPhones", foreign holidays and the like.

Obviously we should try and avoid stereotyping but it's inevitable that we're going to make sweeping statements when we're discussing issues affecting whole generations.

It should go without saying that a factual statement regarding the advantages experienced by a particular generation shouldn't be interpreted as personal criticism of any individual within that generation.

Generational inequality is a real issue. Not sure I'm too keen on the idea of being pressured into not talking about it incase we upset the old folk.

Posted by: bunnyhop

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Is it now the case that parents are leaving inheritance to their grandchildren and not their own children?

I think that is increasingly common - partly because if you live till you are 80 your children are probably 50, and a typical 50 yr old is not going to get a transformative change, but their 20 something kids might. 

This was never the case before. But I'm sure most receiving parties would share any gains with their relatives anyway.

I understand my in-laws have changed their will so that rather than both daughters getting 50/50; they get 50/50 of the house and then then the daughters and grand children get 50/50 on everything else.  As there are currently two daughters and two grand kids that means each gets 1/4 of everything except the house.   Fair to say that when she told SIL who has no kids she was not too impressed - she "feels she is being punished for not having kids"!  She's far from the poverty line - and my best guess is will be at least 55 before she is likely to see a penny of it!  

Posted by: DB

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Reading some of the replies on here reminds me of the quote "Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times".

That's interesting, I'd probably have to go with something like:

Silent generation: strong men who created the good times for the boomers

Boomers: weak men who created the hard times for the millennials

Millennials: strong men creating good times for Gen A

Gen X and Gen Z - inbetweeners

If I had the conversation like the OP, I'd be updating my will to leave my money to the guide dogs trust.

Which kinda confirms what you wrote just beforehand....

weak men create hard times".

Posted by: roli case

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Posted by: Thepurist

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Timely article regarding stereotypes of older folk criticising "depictions of baby boomers - those born between 1946 and 1964 and now in their 60s and 70s - as either frail or enjoying a life of luxury at the expense of their children and grandchildren."

https://www.bbc.co.uk/news/articles/cvg1e75ddygo
/p>

The report they refer to

https://committees.parliament.uk/publications/46686/documents/239426/default//p >

Imagine the outrage on social media if a labour government released a report criticising older people for stereotyping younger people, as they often do

Dey do dough, don't dey do? This is one of the culture wars that exist in this country.

About 15 years ago my Dad sent me this book - out of the blue (no pun intended). Not sure if this was his idea of a joke. 

Pinch - David Willetts -- Atlantic - 9781848872325 - Allen & Unwin - Australia (allenandunwin.com)

"How the baby boomers took their children's future - and why they should give it back."

It's actually pretty good. 

Just to add that the UK already has one of the highest rates of inheritance tax in the world, about fourth or fifth if I remember right. The vast majority of countries have none at all 

.

I agree with whoever it was up there ^ who said that a small amount young can make a much bigger difference than a large amount later. I'm lucky enough that my parents could afford to give me £10k as a house deposit in my early thirties, that has made a massive difference, a far greater impact on my life than, say £100k at 60 would do. 

I'm not expecting much later, a) they are fairly well off but there's a chance it will all go on nursing homes, and b) my mother is only 22 years older than me so I could be well into my seventies before I get anything even if there is any left. I'm not expecting it, anything which does come my way is just a bonus, I don't see myself as entitled to it at all, I didn't do anything to earn it, they did so it's only fair that they enjoy whatever spending it brings them.

Oh and c) world war three appears to be coming anyway, so any talk of what will happen in thirty years time is entirely moot.

Posted by: andrewh

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Just to add that the UK already has one of the highest rates of inheritance tax in the world, about fourth or fifth if I remember right. The vast majority of countries have none at all 

It’s quite difficult to compare.  Some countries (or even local regions / states) have gift taxes, or treat inheritance in with other income.  Many treat real estate differently, many have special rules if the beneficiary is a close family member.  40% does seem high, although it is the same as the rate in the US.  But both here and across the pond only applies to the largest estates.  Personally I’d rather see it apply to more at a much reduced threshold, and the tax rate depend on who gets it.  That could provide a significant incentive to distribute it to those who will benefit (personally and as a country). 

The US has federal inheritance tax but (and state by state variation) it’s around $10m per person and if you have that sort of money you can surely afford a good accountant to get around it. Not the best example. 

Most European countries have similar sorts of inheritance tax to the UK with a few notable exceptions.

I would rather my mum and dad be around to spend every penny of my 'inheritance' than the alternative. I wouldn't trade a day with them for all the money in the world.