Recent research commissioned by Sainsbury’s Life Insurance has revealed the extent to which retired parents are providing financial assistance to their adult children. Retired people were found to have forked out billions of pounds this past year alone. The research has confirms that during the past 12 months, adults in their 40s have received more than £3 million from their parents.
The average amount received by a child aged between 40 and 44 from their parents last year was £1,882. Research revealed the majority of parents paying out these sums will often be near or at retirement age. During the same period, it was found parents spent £1.6 billion on their student children’s expenses.
It is not only parents who are helping out financially. Grandparents were also found to be taking an active role. No less than 3.5 million grandparents provided their grandchildren with money to cover their education and other expenses.
The inheritance disputes team at Slee Blackwell Solicitors are not surprised by these findings. The credit crunch, high unemployment and rising university debt have placed a strain on the finances of young adults; a pressure that is only likely to increase in the future with the uncertain economic forecasts facing us. This is having far-reaching consequences. Our inheritance solicitors have noted tensions rising in families, often stemming from situations where lifetime gifts favour one child over another.
We would strongly recommend that parents and grandparents take professional advice when making their will and ensure that proper consideration is given to lifetime gifts. By addressing these issues head-on future conflict (and costly court battles) can often be averted.
Call us for a free case assessment on freephone 0333 888 0407.