Inheritance plans of rich 'leaving kids high and dry'

Fewer high net worth individuals are leaving their estate to their children when they make wills and probate arrangements, new research suggests.

More than a third of this high-earning demographic simply do not trust the next generation with their inheritance, the Barclays Wealth survey revealed.

The poll also reveals that in many cases this leads to conflict among family members, which appears to increase with higher wealth.

Barclays Wealth wealth advisory director Catherine Grum explained: "In the case of wealth that has been inherited, tensions around entitlement may lead to disputes.

"It is surprising just how many wealthy respondents report experiencing such conflict and the impact that source of wealth can have on this, with wealthier respondents more likely to have encountered such conflict."

Paul Sharpe, chairman of the Institute of Professional Will Writers, claims people drafting a will often neglect a grant of representation, required if a person wants to leave stocks, shares, insurance policies and land or property held in their own name.

Commonly, people wrongly assume things happen automatically. "The reality is that nothing happens automatically."

Posted by Phil Hammond