Without correct financial advice, younger generations could face the prospect of the pot disappearing and not being able to pass on any wealth themselves.
Sanlam’s The Generation Game report, which looks at the intergenerational wealth transfer expected to take place in the UK over the next 30 years, revealed that on average, those over 55 expected to be passing on an inheritance of over £257,000 to either their children or grandchildren.
Alongside worrying how the younger generation will spend the inheritance, those over 55 were concerned about the lack of advice the recipients will receive.
Nearly two thirds (61%) feared that the younger generation were not getting adequate financial advice, with 59% explicitly wanting the beneficiaries of their wealth to see a financial adviser about their inheritance.
A third (33%) stated they would like the beneficiaries of inheritance to use a financial adviser already familiar with the family’s finances.
The report, which was conducted through a mixture of face-to-face and online polling of more than 1,500 people, also showed just 9% had spoken to the recipients of their wealth about seeing a financial adviser.
Penny Lovell, CEO of Sanlam UK’s private office, said: “The matter of inheritance can be difficult and emotional for anyone to approach.
“It is not every day that we have to consider what happens to our money when we have passed away.
“However, it is too serious a subject to be ignored.
“Conversations about passing down wealth should be tackled early, so everyone in the family is clear how much will be left.
“This allows all parties to plan and, despite the sensitive nature of the subject, delivers great peace of mind.
“Financial advisers can help support this process.
“They will very often know members of the same family and will have an understanding of family finances.”
She added: “In many cases, financial advisers can provide an objective, third party view as to how wealth should be passed down and managed.
“This is not only reassuring, but can ensure money is managed more successfully through the generations.”