The average inheritance is a cool £119,000 – so what would you do with a windfall like this?
Surprisingly, few would spend the cash – well not all of it.
A responsible 11% would save all the money, while 8 out of 10 people would spend an average £62,000 and save the rest.
Around 40% would pay £6,000 to pay debts, while another 30% would clear an average £16,000 from their mortgages.
After earmarking that £22,000 for debts, the rest of the money would go on a holiday (77%); home improvements (49%); cars (42%); gifts for children and grandchildren (41%) or big ticket purchases (32%) such as TVs and home appliances.
Helping others
Spending varies slightly between age groups.
Helping children and grandchildren is more important than buying a car or big ticket item for the over 55s. More than 50% of over 55s would spend on others, compared to a third of 18 to 24 year olds.
Ian Atkinson, head of brand at SunLife, the financial firm that carried out the study, said: “It’s quite impressive that people would only plan to spend about 20% of an inheritance, and save more than half of it.
“As our research has found, saving money can make us happier than spending it. The research also shows that experiences can make us happier than things, so where people are spending some of their inheritance, it’s interesting to see the top choice is in fact an experience – having a holiday.”
Unwilling executors
Meanwhile, separate research by Co-Op Funeral Care found that one in five people have had to unexpectedly sort out a loved one’s estate after they had passed away.
Nearly half confessed the executor’s role was either stressful or upsetting because dealing with the paperwork cost them money, they had to take time off work to carry out their duties and following the law caused family upsets.
James Antoniou, Head of Wills for the Co-op, said: “When writing a will it’s important that people understand their options and that the role of an executor is properly explained. Making informed decisions on who should manage their estate can help avoid issues after death.
“Our study reveals that two fifths (39%) of UK adults want to depend on friends and family to take up the role of executor when they pass away, but nearly 20% did not find out about what was expected of them until their relative or loved one has died.
