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Half of Britons have checked what their parents’ home is worth, with two in five people relying on an inheritance to help them financially and buy their own home in the future.
And yet most have not even spoken to their parents about the inheritance they will receive, new research finds.
Among those whose parents own property, the average amount they expect to receive is £195,687, with the majority of this money (£182,621) coming from property inheritance alone.
Two out of five people depend on an inheritance to buy their own home
Zoopla’s research found that 43 percent of those with at least one parent who owns a property depended on an inheritance to buy a home.
However, only 30 percent said they had actually talked to their parents about how much they were likely to inherit.
Zoopla conducted the study among 2,000 people with at least one living parent who owns a home in December 2022.
The real estate website suggested that many people are making “lofty plans” with an inheritance they have not yet received.
Overall, 58 percent of people said they expected to be able to move house, upgrade their home, or pay off all or part of their mortgage as a result of receiving their inheritance.
Of them, 36 percent are renting until they inherit, after which they will buy to move up the property ladder, while 29 percent have gone so far as to purchase a home based on an inheritance they will receive in the future. help pay their mortgage.
According to the children, the main reason for checking the value of their parents’ home was for their parents’ benefit, with 36 percent saying it was to provide financial advice.
The average amount people with home-owning parents expect to receive is £195,687
However, a third – 33 percent – admit the reason they checked the value was to get an estimate of their inheritance, while 27 percent checked out out of sheer curiosity.
In addition to checking the home’s value, many even admitted to making plans for the house they expect to inherit while their parents are still living there.
Of those expecting to inherit a home, nearly half (44 percent) have plans about how they would change it and, perhaps unbelievably, one in seven (14 percent) have already started making changes.
Despite the fact that most people whose parents own a house expect to inherit it – 68 percent – less than a third – 30 percent – asked them how much they are likely to receive.
The top reason people give for not asking is that they think it’s none of their business – at 30 percent – while others simply choose not to because it’s too inconvenient for 13 percent.
Some people have secretly checked the value of their parents’ property to avoid awkwardness – though most have been more open about it
Of the 12 percent who secretly checked the value of their parents’ home, 30 percent admitted it was because it would be embarrassing or uncomfortable to admit they checked.
Meanwhile, 25 percent because they didn’t want to appear greedy or because their parents wanted to get the wrong idea.
Discussing the topic of inheritance is often viewed as taboo, with a quarter of respondents agreeing that it is not acceptable to talk about inheritance with anyone.
While some may find this a bit cheeky, it’s actually really important to have an idea of what’s coming your way in the future so you can plan financially for the long haul.
About 43 percent think it’s acceptable to talk about inheritance with parents, but only 19 percent think it’s acceptable to talk about inheritance with your children.
Zoopla said this suggests that while children are eager to talk about it with their parents to help financial planning, parents prefer not to talk about it.
Perhaps this explains why so many are hesitant to discuss the subject: 30 percent say they have argued with relatives about inheritance issues in the past, and 51 percent believe that inheritance may be the cause of family disputes in the future.
Currently, 41 percent of those whose parents own their own homes say they have never discussed inheritance with family.
Zoopla’s Daniel Copley said: ‘With home value data now available online, it’s interesting to see so many using this not only to get an idea of what their own home might be worth, but to get an idea of the kind of amount they can get in the future in terms of parental inheritance.
Two in five people whose parents own their own home say they have never discussed their inheritance with family
While some may find this a bit cheeky, it’s actually really important to have an idea of what’s coming your way in the future so you can plan financially for the long term, especially with regards to real estate decisions.
“The best advice is to have an open and honest conversation with your parents about this, but we know that most people – parents and children alike – find the subject too difficult or uncomfortable.”
Robert Green, of estate agents John D Wood & Co, said: ‘A lot of families talk about estate planning. Covid may have caused the generally healthier baby boomer generation to think about what’s next.
For some, it is possible to pass on wealth in a more tax-efficient way, although this may come at the cost of losing control of the money before death, which means there must be a healthy surplus, or a high degree of trust with the children and any spouses.
The “Bank of Mom and Dad” is also a way of passing on wealth, often by helping with a deposit. We often see high value properties in affluent areas like Chelsea fully funded by parents looking to raise their children and see this as a good way to do this while avoiding estate taxes in the long run.”