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DUBLIN–(BUSINESS WIRE)–The “Estate and End of Life Planning 2020” report has been added to ResearchAndMarkets.com’s offering.

The report studies the degree to which consumers in the UK engage in estate and end of life planning. Estate and end of life planning involves consumer actions to pass on their wealth to their loved ones and other people who matter in a way which is most effective in terms of inheritance tax, their own financial situation as they age, provision for loved ones after their death and where and how their passed-on wealth can be spent. The research is based on a survey of 2,093 consumers using MIS Group panel of UK consumers.

Only 25% of consumers have undertaken any of the actions normally associated with estate planning, like making gifts to loved one, gifting a home to children etc. This is less than the 35% which have made a will: for almost half of consumers estate planning is associated only with making a will. Consumers who have taken any estate planning action tend to own estates which have a much greater value compared with consumers who have not acted: in other words, wealthier consumers are more likely to have acted compared with less affluent consumers.

The most common action undertaken is making tax-free gifts to another person or charity/political party like money, property and possessions. Around half of the individuals making a gift were motivated to do so by a desire to cut their inheritance tax bill or reduce their eligibility for social funding. The second most common action undertaken is gifting a home to your children, with most consumers doing so to cut inheritance tax and social care costs. Very few adults have set up a trust for their children or taken out a lifetime mortgage in order to cut their potential inheritance tax liabilities or liability to pay for social care costs.

Key findings from the research are:

  • 35% of consumers have given estate planning a great deal of thought.
  • Consumers are aware of the value of estate planning and around half of consumers consider estate planning as part of being a good spouse/parent.
  • Despite strong interest in the subject, a significant minority of consumers face barriers to engaging in estate planning, these barriers including perception that it is not something for them because of the small size of their estate and the view that end of life planning only means making a will.
  • Around one-third of consumers say COVID-19 has made them think more seriously about what would happen if they died.
  • Only 15% of consumers have consulted a professional on an estate planning/end of life issue.

Key Topics Covered:

EXECUTIVE SUMMARY

  • For most people, immediate family are their main concerns
  • Most people own modestly valued estates
  • Few consumers have given estate or end of life planning serious consideration.
  • But it is an issue that evokes considerable interest.
  • And one where interest could be increased if the barriers where lowered
  • For most people estate planning is not age dependent
  • COVID-19 inspires greater interest in estate planning
  • Interest is high but this has not inspired action.
  • Because not enough consumers have been motivated
  • Most consumers need professional when planning or administering an estate.
  • But few have sought it

INTRODUCTION

  • Definitions

ESTATE VALUES AND DESCENDANTS

  • Spouse and children the main beneficiaries of a deceased estate
  • Three descendant groups
  • Average estate values are less than 250,000

ATTITUDES TOWARDS ESTATE PLANNING

  • Less than one-in-five consumers have laid out definite estate plans
  • Consumers appreciate the value of estate planning
  • The barriers to financial planning vary by age
  • Making definite plans means overcoming barriers

ESTATE PLANNING: MOTIVES

  • Almost half of consumers think estate planning should begin at any age
  • To attract younger consumers, link estate planning with life stage triggers
  • Age is by far the strongest influence on the importance of triggers
  • Concerns for loved-ones and equity the main drivers for engaging in estate planning
  • Without motivation, it’s hard to plan
  • The greater the estate value the greater emphasis on management and tax minimisation
  • Descendants also play a key role in driving motivation
  • Motivations change over time
  • COVID-19 inspires greater interest in estate planning

ESTATE PLANNING: ACTIONS UNDERTAKEN

  • Few consumers are motivated to act
  • Getting consumers to think on the issue helps drive action
  • Currently, it seems only the wealthiest have been inspired to act
  • If consumers give gifts, they tend to be within the tax limits
  • If a home is gifted, the whole value tends to be given
  • Only 4% have a protective property trust but one-in-five are interested
  • The life insurance gap
  • Funeral costs

ESTATE ADMINISTRATION

  • Most consumers need help and support when considering administering an estate
  • Some gaps in the appointment of an estate administrator/executor
  • Consumers prefer to appoint friends and relatives as executors

GETTING PROFESSIONAL HELP

  • Only one-quarter of consumers feel they can go it alone
  • Mature, affluent consumers the most likely to feel they can plan themselves
  • While one-quarter can go it alone, over six in ten want total or partial control
  • Being too self-reliant comes with risks
  • Less than one-in-five have sought professional help on estate planning issues
  • Affluent consumers by far the most likely to consult professionals
  • Law firms mainly used for end of life planning
  • Around four-in-ten consulted a professional in 2020
  • Most consumers consult advisors as and when needed

For more information about this report visit https://www.researchandmarkets.com/r/ym7zjv

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