Inheritance tax: Shock poll reveals pensioners' DESPAIR at not leaving more to children
MORE than two thirds of pensioners are worried about their children's financial future after their death, research has revealed.
And around half of over 65s are saddened they won't be able to leave their loved ones an inheritance that will offer more security, found a report by Remember A Charity.
While many believe the value of their estate is likely to be eaten up by the Government's social care policy.
Assets which fall above the £325,000 inheritance tax threshold, and the £100,000 extra allowance for the main home, will also be liable for the duty at a rate of 40 per cent.
The tax further erodes what beneficiaries receive.
As a result, around two thirds of people under-45 are not expecting to receive a substantial inheritance, according to the report.
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Social care costs and rising inflation are the biggest reasons that younger people are not banking on receiving large sums from parents.
The report showed under-45s would be happy if their parents left up to 16 per cent of their estate to a charitable organisation.
However, only around five per cent of over-65s feel they will be in a position to leave cash or assets to charities after securing the future of their family.
Rob Cope, director at Remember A Charity, said: "There are obviously financial challenges facing all generations in today’s Britain.
"However, that the average adult would be happy for 16 per cent of their family estate to go to good causes only serves to highlight how giving we are as a nation.
"Legacy donations are the lifeblood of so many vital services that are provided by charities all over the UK.
"We hope that this trend continues and more people decide to have their say on the world they want to leave behind in this way."