11.6 million people have received an inheritance in last decade

More than 11.6 million people in the UK have received an inheritance in the past 10 years, new findings from Key have revealed.

The equity release adviser stated that the average age at which people receive a windfall currently sits at 47 years old.

Key’s research, based on a study among 2,000 UK adults, found that more than one in five (22%) people have received money as an inheritance, which rises to 29% among those between the ages of 65 and 74.

According to HMRC data, inheritance tax (IHT) receipts hit £5.4bn in the 2020/21 tax year, a figure slightly up on the previous year. However, these figures also show that receipts from IHT have stayed broadly flat for the past four years thanks in part to the introduction of the residential nil rate band, which allows spouses or civil partners to transfer allowances rising to £175,000 in the 20/21 tax year.

Key CEO, Will Hale, commented: “Intergenerational wealth transfer is a major issue for society as a whole and for the financial services industry, and the scale of inheritance shows why that is the case.

“The idea of inheritance arguably works best when the person receives the support at a time in their life when it can do the most good for their long-term financial security.”

With the average age of those receiving an inheritance currently at 47 years, and the average first-time buyer age sitting at 33 years, Key suggested that discussions around “pre-inheritance” have gained prominence over the last decade.

The adviser’s research showed that parents are most likely to leave the biggest inheritance, at an average of £65,600, while grandparents on average leave £24,200.

Around 11% of people, equivalent to six million across the UK, have received an inheritance from their parents while 4%, or 2.3 million people, have received a cash gift from their grandparents.

Hale added: “With the average age of inheritance sitting at 47 years old – when people are more likely to have built up assets – we are seeing more conversations happening about providing people with a ‘pre-inheritance’.

“Not only do people benefit from the support when they need it but their older relative is able to enjoy seeing the difference that it has made to their lives. However, getting good financial advice is important to ensure than not only do they not fall foul of IHT regulations but there is sufficient assets to cover potential care costs in older age.”

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