Kids spending inheritance

Two thirds of adults aged under 35 are looking to secure an inheritance, but half of those over 50 are already spending the cash, according to a survey by Skipton Financial Services.

Of the older group, more than a third said that leaving an inheritance would put overdue strain on finances, with a fifth saying that they were unlikely to leave anything when they die.

Andrew Barker, managing director of Skipton Financial Services, said: 'It is no surprise that with rising taxes, university debt growing by the year and mortgages much more unaffordable than before the credit crunch, young people are more and more desperate for a financial helping hand from their parents.

'It is particularly scary that, while almost two thirds of youngsters are expecting to receive an inheritance, for the vast majority of these it is purely an assumption as only one in four has had a conversation with their parents about the inheritance.'

Accountant Mike Warburton added: 'There will always be more people willing to accept money than those who are happy to give it away and many people are now reaching retirement with pension funds that have not done as well as they hoped.

'There are broadly three views on inheritance. Those who resent being taxed after death, those who think that it is the best time to raise tax because you are past caring and those who don't want to leave money to the Government or their children but want to enjoy it themselves. I suspect the latter is the largest group.'

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