05 January 2017
Divorce threat ‘giving parents second thoughts over inheritance’
Almost a third of parents would not be prepared to provide an inheritance to their married children, due to concerns over their chosen partners.
That is according to research from Investec Wealth & Investment, which suggests 30% of parents hold this sentiment. Explaining their feelings, parents fear assets could leave their immediate family if their son or daughter were to divorce.
January is often viewed as a peak period for divorce. And 12% of the parents questioned said they have already seen their children's marriages break down. A further 14% said they lack confidence in their child's ability to sustain their marriage over a lifetime.
A lack of financial confidence in their children's partners is another reason why parents are concerned about passing money on, the study found. Some 42% said they have limited confidence when it comes to their son or daughter-in-law's financial capabilities.
Simon Bashorun from Investec Wealth & Investment said some parents may set up discretionary trusts in order to protect their family's wealth.
He added: "With divorce rates as they are in the UK, we are seeing increasing numbers of parents looking to protect wealth from leaving the immediate family, particularly if they're pessimistic about the state of their children's marriages."