7 by rananeelam1234


									Why We're Caring Less About Our Children's Inheritance

What do you plan to do with your property when you retire? Well, if
you're planning to sell your home, pay off your large mortgage and use
the cash to fund your lifestyle, you're not alone. A new survey of
consumer attitudes has found that there is a generational difference
between views on leaving an inheritance to your children.

Do you plan to repay a high value mortgage and leave your home for your
kids? Or are you planning to use your home to fund your retirement? Keep
reading to find out how our attitudes to providing for our children on
our death are changing.

Recent retirees less concerned about leaving an inheritance to their

Recent research found that people approaching retirement are more likely
to use up housing equity to fund their lifestyles rather than passing on
their home for inheritance. However, the survey also showed that
attitudes differ between retirees of different ages.

Older retirees were more likely to believe in that they have a duty to
leave something to the next generation. However, those coming up to
retirement within the next few years or who have recently retired felt
that passing on the home would be nice to do, but was not essential.

Older retirees seem to feel that they have worked hard to own and
maintain their own home and are therefore more likely to want to pass it
on to their dependents. However, the younger generation have increasingly
different priorities.

The priority for those in the run-up to retirement is how to generate
sufficient income to maintain an acceptable standard of living. Faced
with depressed pension returns, inheritance becomes far less important.

But it is not completely selfish. There was a sense they had done enough
for their children and that the children were often in a better financial
position than they were. Certainly many adult children interviewed for
the report agreed with this approach and did not want their parents to
cut back simply to leave an inheritance.

Mortgage Introducer reports that the survey revealed there was a high
degree of interest in passing on money before death so retirees could
enjoy seeing it being used, although only a small number were aware this
could be beneficial for inheritance tax purposes.

Overall 55 per cent of respondents to a recent survey agreed they would
rather give money while still alive while 30 per cent disagreed. This
number was higher among the recently retired with 70 per cent agreeing
and only 17 per cent disagreeing.

Increasingly, high net worth mortgagees are seeing their property as an
asset which they can realise in the future to benefit their lifestyle.
This may mean repaying a very large mortgage and downsizing their home or
selling up and using the cash to supplement their pension and investment

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