Nearly half (46 percent) of benefactors have not discussed their inheritance plans with their children, according to new research.
UBS Wealth Management Americas (WMA) discloses this finding in its latest quarterly UBS Investor Watch report, which explores the issues around inheritance and why families avoid the topic. This eighth edition of UBS Investor Watch polled 2,882 U.S high net worth and affluent investors, the core sample of 2,474 investors having at least $250,000 in investable assets; 1,121 have at least $1 million in investable assets.
The survey finds that while both benefactors and heirs are optimistic about giving and receiving inheritance, neither is actively engaged in inheritance planning and are reluctant to discuss the topic before a death in the family occurs.
The research identifies the following as the main barriers to discussions about an inheritance among survey respondents:
- It doesn’t feel like a pressing issue (43 percent)
- They don’t want their offspring to count on the inheritance (32 percent)
- They don’t want their children to feel entitled to wealth (27 percent)
Three in four benefactors also view it as highly important that their children use their inheritance wisely and don’t squander it.