Nearly one in five UK adults have experienced family disputes due to a lack of conversations about inheritance planning, with a quarter believing that avoiding these discussions could lead to future conflicts, according to research by Canada Life.
The study, which is part of Canada Life’s Life100+ programme, identifies key reasons for people avoid discussing inheritance. These include not having begun the process or not intending to leave an inheritance. Around 10 per cent of respondents claimed that their family doesn’t talk about money, and among those 55 and older, that percentage jumps to 13 per cent. Furthermore, 5 per cent of people attempted to initiate these conversations but encountered opposition from family members.
Additionally, people who anticipate receiving an inheritance often steer clear of the subject, claiming that it is too private, too difficult to discuss, or feels too far in the future. According to the study, although attitudes are shifting, almost two out of five people believe that previous generations were secretive about inheritance. Around 43 per cent of younger individuals said they plan to have more candid conversations about these topics.
Many adults in the UK are aware of the possible advantages of having candid conversations about inheritance. Around 41 per cent say that disclosure could lessen future legal issues, and about 60 per cent think that it would help family members understand their position.
Other reported benefits include fairer distribution of assets (35 per cent), fewer family conflicts (34 per cent), improved financial planning for relatives (34 per cent), and stronger family relationships (26 per cent).
A third of those who have lost a parent regret not having these discussions despite these benefits, as they frequently find it too challenging to start the subject.
Canada Life tax and estate planning specialist Stacey Love says: “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 open-minded 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 often-complex situations, to make inheritance planning smoother, more manageable, and easier to communicate to loved ones.”