A lack of conversations about inheritance planning is creating significant tension between family members, according to new research as part of Canada Life’s Life100+ programme. One in five (18%) UK adults have had a dispute within their family due to a lack of conversations about inheritance planning, and a quarter (24%) agree that avoiding conversations about inheritance planning may lead to future disputes.
The research explores the reasons why people do not want to discuss their inheritance plans with their family. The most common explanations are that people aren’t planning to leave an inheritance to a family member or loved one (19%), or the fact that they have not started inheritance planning yet (19%).
The research also found that one in ten (10%) people said they do not talk about finances as a family, rising to one in six (13%) for those 55 or over. Others (5%) said they tried to have a conversation about their inheritance plans, but their relatives or loved ones did not want to discuss it.
Those expecting to receive an inheritance are similarly tight-lipped. The main reason for avoiding discussions is that the possibility of receiving an inheritance is “too far in the future” (29%). Other respondents said that they “prefer not to think about it” (26%), consider it “their business and no one else’s” (21%), or find it simply “too difficult to discuss” (14%). With so many avoiding these essential conversations, it’s unsurprising that nearly two-fifths (37%) feel previous generations have been closed regarding family inheritance planning.
However, Canada Life’s research indicates that younger generations are shaped by their family experiences, with more than two-fifths (43%) planning to discuss inheritance more openly than their older family members.
Regardless of intergenerational differences, many UK adults believe there would be positive impacts from having more open discussions about inheritance. Three-fifths (60%) believe that more transparency would help family members understand where they stand with inheritance, while four in 10 (41%) said it would minimise legal complications in the future. Respondents also said that more transparent conversations about inheritance would have a positive impact in:
• Fairer distribution of assets - 35%
• Reduced misunderstandings or conflicts among family members - 34%
• Improved ability for family members to plan their financial futures - 34%
• Stronger family relationships - 26%
Although we are often hesitant to engage in these conversations, a third (31%) of those
who have lost their parents wish they had, but found the discussions too difficult, leaving a
lingering sense of regret.
Stacey Love, tax and estate planning specialist at Canada Life, comments: “Discussing inheritance can be challenging for many families, with some believing that avoiding it may help maintain harmony in the short term. However, our Life100+ research reveals that avoiding these conversations often leads, or has the potential to lead, to conflicts within families. To prevent these issues, we need a shift toward transparency. It’s encouraging to see that more than two-fifths of people plan to discuss inheritance more openly than previous generations, breaking the taboo around inheritance and later-life planning. Open conversations can ensure intentions are clear, reduce potential conflicts, and better prepare loved ones for the future. By fostering a more openminded approach, families can build stronger relationships and reduce misunderstandings over time, as well as feel more in control and satisfied with outcomes.
“Working proactively with a financial advisor can be an essential step, as they can provide valuable guidance and advice in an often-complex situations, to make inheritance planning smoother, more manageable, and easier to communicate to loved ones.”
The Life100+ report is the first in a series of in-depth research papers exploring the different aspects of our lives that will be affected by increasing longevity. Download a copy of the full report here:
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