Youngsters get pre-inheritance cash
Britons are increasingly passing on money to the younger generation before they die, a survey has showed.
Insurance giant Aviva said there was a growing trend for people to receive a pre-inheritance, with younger people the most likely to benefit.
It said 46% of people had received money from their parents or other relatives before they had died, compared with only 37% who had benefited from a traditional inheritance.
The majority of people who give away money before they die or as an inheritance do not place any restrictions on how it can be spent. But a third of people said they had made suggestions, while others have left specific instructions, with 7% saying the cash must be used to buy a property and 2% to pay for education.
One in four people who received money from a relative said they had used it to invest for the future, with 19% paying off debts, 12% using it to fund home improvements and 11% paying off their mortgage.
Clive Bolton, Aviva's at retirement director, said: "At Aviva, we are seeing a number of shifts in how people use their money in retirement. The pre-inheritance is a fairly new initiative.
"Alongside the obvious benefits of cutting the amount of money liable for inheritance tax, it also seems many benefactors like to see their money being enjoyed whilst they are still alive.
"In addition, it also allows benefactors, if they wish, to have some input into how the money is spent."
But 17% of the over-55s said they were not planning to give any of their relatives a pre-inheritance, with a fifth saying they could not afford to pass on any money early, while 21% said they needed to hold on to their cash to be financially secure.
The research was based on responses from 1,337 people questioned during October.