Nothing left for relatives

A difference between relatives' expectations of an inheritance and the financial health of family members could leave people disappointed.

Almost half of people expect to inherit from a family member. Two in every five people say that they hoped to inherit wealth from other family or friends, with 11 per cent of people saying that it is vital to their plans, yet when asked about leaving money 61 per cent of people said that they would look after their own needs in life rather than worry about a legacy for their nearest and dearest.

David Kuo, head of personal finance at Fool.co.uk, warns that relying on the same financial certainties as previous generations could lead to disappointment. He said: "The world has changed significantly since Grandma divided up the cash under the mattress in her final hours.

"Many of us don't own our homes outright, and the idea of a job for life is dead and buried. If you spend your waking days worrying about whether your parents will leave you anything when they die, living won't be much fun for either them or for you. But if you plan to leave a legacy for your children, then it's vital to plan ahead. Failing to do so could mean your estate distributed to people you may not even know. A proper will should prevent this, and also stop the taxman from taking more than necessary."

Householders struggling to balance increasing fuel and food prices, re-mortgage or rent rises, utility hikes and the cost of home insurance to protect against flood risks, fire or theft might wish to get a cash injection to their bank balance - but may not have their dreams come true.

27/06/2008 15:33:48