2008 Wills and Trusts Report
A leading financial organisation recently published their 2008 Wills and Trusts Report. This article, from leading estate planning company Trust Inheritance examines some of the findings of this report.
In total, over 1000 people from across the U.K were interviewed for the study. These people were divided into categories including age, social class and marital status. Here, we will take a look at these factors in further detail, and how they affect people’s will writing habits.
Age - One of the biggest factors in determining whether people make a will is age. Only 5% of the 18-24 year olds surveyed had made a will, compared to 79% of those over 65. Clearly, making a Will is something that most people only consider later in life.
Social Class - Whilst a high proportion of people (51%) from the highest social class, AB proved likely to write a will, the highest percentage was actually from the lowest grade, with 53% of those in the DE classification stating that they were likely to make a will.
Marital Status - Just 20% of the single people questioned had already made a will, by far the lowest grouping. By contrast, 69% of those in the category of widowed/separated/divorced had made provisions.
Employment - Part time workers (51%) and the unemployed (55%) were far more likely than those in employment (37%) to make a will.
Children - Surprisingly, those with children under the age of 18 are less likely to make a will than those without.
When asked to whom they would turn to when looking for advice on writing a will, 77% said a solicitor, 54% said a financial adviser, while 47% said they would use the internet to research the subject themselves.
Estate planning and inheritance tax
The report reveals a lack of knowledge from most of those surveyed on the inheritance tax allowances they are entitled to. For example, only 36% of respondents were aware that an inheritance tax exemption exists for gifts made from left over income. 60% were also ignorant to the fact that, since last October, the allocation of tax-free inheritance is transferable between husband and wife.
Summary
As with previous reports, this study illustrates that around half of those questioned have not written a will. This shows that there is a widespread apathy, particularly amongst young people, concerning the issue of making a will.
In terms of inheritance tax, there is a clear lack of familiarity with the rules governing this taxation, with many people demonstrating ignorance of the allowances and concessions available to them.
About the Author
This article was brought to you by Trust Inheritance, who offer estate planning and will writing services to individuals across the U.K. To find out more about the range of services they offer, visit: http://www.trustinheritance.com