Every new generation may understandably feel jealous of its forebears, perhaps never more so as younger people struggle to get on the housing ladder while older generations pay off the mortgage on their home and enjoy the benefits of early retirement. But as the older generation look down their noses at younger people, who spend a large proportion of their income on mobile phones, coffee shops and wear-once clothing, it’s easy to see why there isn’t always much sympathy. It’s almost as if young people don’t have the same right to buy their own home as their elders, even though younger home buyers will need to pay far more for their properties.
The Millennial Generation (born between 1980 and 2000) have much to look forward to; they will live longer than previous generations, enjoy better health and be paid at least the minimum wage. And (if their expectations are correct) they might even inherit sufficient proceeds from an inheritance to enable the purchase of their own home.
However, the average inheritance is just £11,000 and the typical inheritance age between 55-64 – vastly different from the results of a survey conducted by wealth manager, Charles Stanley. The survey revealed that millennials were often of the belief that they would inherit almost £130,000 and one in seven thought this would happen by the time they were 35.
The wishful thinking of these young adults has led to financial advisers to warn against the reliance of inheritance to pay for a home purchase deposit, even when there was the intention of families to leave property to their descendants. The unrealistic expectation highlights the inadequate financial planning of half the people in the UK, who have not yet written a will.
The government has delayed its plans to increase the cost of probate, which was due to be introduced in April 2019, and is likely to increase the cost to relatives of settling estates. The new six-band system will lead to estates worth over £2 million will face the maximum £6,000.
As part of the probate process you will need to get a valuation of the money, property and possessions (‘estate’) of the person who’s died. Check whether you will need probate at the government website. If you’re dealing with probate, contact a Property Surveying Chartered Surveyor for a probate valuation on the property assets in question.