Death is a difficult conversation for families to have but for the financial planning market it is a vital one that is unfortunately being ignored.
Legal financing company Ampla Finance commissioned YouGov to survey 2,165 UK adults and found that 44% haven’t tackled the conversation with parents, guardians or partners around financial arrangements following their death.
The study highlighted a widespread lack of awareness around family finances and the probate process, and discovered that only 11% of respondents felt they had enough understanding of probate to complete the process but, despite this lack of knowledge, only 14% of UK adults planned to appoint a solicitor.
The survey also revealed that inheritance was a “key financial pillar rather than a windfall” for 57% of Brits, with them likely to use it to bolster essential savings, pay bills, clear personal debt or help fund a house deposit.
Only 14% of respondents knew that inheritance tax must be paid within six months of the date of death, however, 15% thought that it must be paid within a year of the date of death.
Steve Gauke, head of partnerships at Ampla Finance, said: “The UK probate system is notoriously complicated and increasingly slow-moving, and the lack of knowledge around its workings evidenced in this whitepaper shows that this can catch many people out.
“Unforeseen delays can badly impact a family’s financial planning, so we need greater education around probate and to encourage a frank conversation on family finances, even though we know it’s difficult.”
