Most people aged over 55 still intend to pass on their wealth through inheritance after they die, despite many having witnessed family disputes over inheritance, according to new research from wealth management and employee benefits firm Mattioli Woods.
The research, conducted by YouGov for UK wealth management and employee benefits firm Mattioli Woods, found that passing assets on through an estate remains the preferred approach for most over-55s. Combining lifetime gifting with inheritance was the second most popular option, while only a minority said they planned to transfer most of their wealth before they die.
The findings suggest that experiencing inheritance-related conflict has done little to change how people intend to pass on their assets.
Inheritance conversations remain uncommon
Despite the importance of inheritance planning, many families are still not talking openly about it.
One in four (25%) over-55s said they have never discussed inheritance with their family. The research suggests this may reflect ongoing discomfort around the subject, concerns about privacy or a belief that it is simply too early to have the conversation.
Family disputes are widespread
The study found that almost two-thirds (64%) of respondents aged over 55 had witnessed disputes among relatives or friends over inheritance.
Arguments and damaged relationships were the most commonly reported outcomes, while some respondents had seen disagreements escalate into formal legal disputes.
Experiences of inheritance conflict varied across the UK. Wales had the highest proportion of people who had witnessed inheritance-related disputes (77%), followed by London (72%), the South East (71%), the South West (70%), Scotland (69%) and Yorkshire (64%). The East of England recorded 63%, the West Midlands 60%, while the East Midlands, North East and North West each stood at 58%.
Later-life care costs top inheritance concerns
The research also found that paying for care or other later-life costs is now the biggest concern for over-55s when it comes to passing on wealth.
Respondents ranked these costs ahead of Inheritance Tax, the risk of running out of money during retirement, treating beneficiaries fairly and the potential for family disputes.
Adeline Christy, Wealth Management Director at Mattioli Woods, said: “Although inheritance disputes are remarkably common, they are not fundamentally changing how most people want to pass on their wealth. Leaving assets through an estate remains the preferred approach for many families, even among those who have seen first-hand the tensions inheritance can create.
“What the findings do highlight is the need for earlier planning and better communication. Many inheritance disputes arise not because of the value of an estate, but because expectations have never been discussed. Open conversations, supported by professional financial advice, can help families understand the reasoning behind decisions and significantly reduce the likelihood of conflict later on.”
She added: “There is no single right way to pass on wealth. Lifetime gifting can be an effective strategy for some families, helping to support the next generation while potentially improving tax efficiency. For others, retaining control of assets throughout later life will be entirely appropriate. The most important thing is that any approach forms part of a long-term financial plan that reflects personal circumstances, family dynamics and future objectives.”
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