Majority still favour passing on wealth despite inheritance disputes

The majority of over-55s continue to favour passing on wealth after death, despite widespread experience of family conflict.

This is according to new research from Mattioli Woods, which revealed almost three quarters (64%) have witnessed disputes among relatives or friends over inheritance.

Many have also seen more serious disagreements escalate into formal legal disputes.

Wales has the highest proportion of people who have witnessed inheritance-related disputes (77%), followed by London (72%), Scotland (69%), the South East (71%), the South West (70%) and the East of England (63%).

Yorkshire stands at 64%, the East Midlands at 58%, the West Midlands at 60%, while the North East and North West both stand at 58%.

The study also found that concerns about later-life care now outweigh worries about inheritance tax (IHT), with over-55s ranking it as their biggest challenge.

Clients do not fear tax – they fear loss

Mattioli Woods wealth management director Adeline Christy said: “Although inheritance disputes are remarkably common, they aren’t fundamentally changing how most people want to pass on their wealth.

“Leaving assets through an estate remains the preferred approach for many families, even among those who have seen first-hand the tensions inheritance can create.”

Christy continued: “Lifetime gifting can be an effective strategy for some families, helping to support the next generation while potentially improving tax efficiency.

“For others, retaining control of assets throughout later life will be entirely appropriate. There is no single right way to pass on wealth.

“The most important thing is that any approach forms part of a long-term financial plan that reflects personal circumstances, family dynamics and future objectives.”