To think the Uk will move to an iheritocracy

[nappyvalley1992]

In the UK (especially the south east) PAYE earnings seem to increasingly play little part in overall wealth and what matters more of background/family wealth and increasingly the only path to a comfortable middle class life is via inheritance.

I am a late millennial of the south east whose parents own a very average home worth £1 million which under current rules I should inherit tax free. It's a similar story for almost all of my friends (amount almost equivalent of a lottery win). My parents were not even very middle class and had average jobs, they have just got lucky through house price inflation. Its not often spoken about, but I can foresee a wave of very wealthy millennials emerging in the next 15-20 years, and increasingly it wont really matter what someone earns in their day job, the biggest determinant of wealth will be those who are lucky enough to inherit.

Some millennials might even inherit large sums 2 or 3 times via grandparents, and inheriting from parents on both sides of the couple.

Will the government eventually start taxing inheritance more or what will the future look like in this area?

My MIL had Dementia, it's an awful disease. She had to be cared for at home, her insurance (USA) didn't cover it.

But are you sure there's no link between dementia & wealth? There is for practically every health issue.

www.alzheimersresearchuk.org/news/wealthy-linked-reduced-dementia-risk/

My mum was 76 when she inherited from her own mother.

I foresee at least one of my parents going into care.

A friend's mother is paying £1800 per week for care so if there is some money it might not last long.

Rather than get cross at people who inherit, perhaps people should ask their parents why they don't have anything to inherit. Then set your kids up, at least a little bit. That's how all families can get ahead if they really want to - by playing the long game.

But I accept that there is quicker gratification in pointing the finger and saying, "It's alright for you".

Each to their own, I guess.

Both my parents were over 90 when they passed away. My mother needed a few months of care in a care home at the very end. My father didn’t. Their house was the perfect place to be. Good room spaces and a stair lift

Single parents living in the south will often pay it. Their allowance will be £500k and many average homes are worth more than that.

Exactly, some would say that the children of single parents have already been disadvantaged, it doesn’t seem fair.

They won’t because they’ll be dead. Their estate will.

I don’t think it will be millennials that benefit so much as the generation above. You’ll have lots of the 1970s borns approaching their 50s with parents in their 80s about to inherit. This is going to be the generation of public sector workers that the government would like to keep working…. They’re unlikely to be working full pelt once they inherit from
their own parents.

millennials are from 1981-1996 so are still pretty young (28-43). The older ones will probably be inheriting on mass in the next 10-20 years.

You’ll have lots of the 1970s borns approaching their 50s with parents in their 80s

People on the whole had their kids much younger in the 1970s. Many of those parents are still in their mid 70s.

The reason why this is such a new phenomenon is because prior to Thatchers reforms fewer people owned their own home. So there has never been a situation like this before that humble nurses and teachers could potentially be passing on 1 million pound estates if they live in London. However, as is often the case, the government will try to take a cut and this major transfer of wealth won't happen.

Yes. I am 52, my mother is 78. She is fitter than I am, I am fairly sure and hopeful that she will live well into her 90s, at which point I will be around 70

It's been like this since the 19th century. It's the basis of the plot of many Victorian novels. The only difference is that now the media is starting to make an issue of it.

My son’s 49 and I’m 71. God alone knows when he’ll inherit given my genes - my parents died aged 97 and 99!

Yes God forbid that humble nurses and teachers manage to transfer any wealth to their families when they die.

The point is that very normal people are now being hit with IHT.

Only about 15% of over 85s go into residential care.

yes I understand that . It’s a shame if they are taxed more though. Tax is already 40 percent over on anything above 325 000 ( unless both parents are leaving the house to kids or grandchildren) .

@Blanketyre Yes, but a lot of them have carers coming in to look after them at home. My Dad's 86 and he knows several people in that situation. He can make do with a cleaner/light housekeeper for now, but he's said that he may need more care in the next few years.

Ok, sorry, the children of the single parents will end up with an estate that is liable for IHT.

£500k if they own a house. Not just single parents, the children of a couple who aren’t married too.

"Up to" is doing some heavy lifting there. The majority of over 85s are single, the vast majority of care home residents are.

Well yes but that's worse isn't it, in terms of inheritance. If you've only got one parent and that parent's savings are wiped out in care home fees, that's your whole inheritance.

You don't have an inheritance until someone dies and leaves it to you. Whilst someone is alive it is their money and in the case of care home fees, they are spending their money on a service they need.

It’s not really worse. The majority of those 85+ in care homes are widowed and will have inherited their spouse’s estates.

The problem is that care home fees can swallow up vast amounts of money, so unless you are really, really wealthy, you're likely to finish up with nothing to your name.