Where are children most likely to benefit from their family’s wealth?

A big topic for the private banking sector is inheritance and wealth transfer. The wealthy are becoming wealthier at younger ages, but where in the UK is this most prevalent? Patrick Brusnahan reports

Furthermore, where in the UK are the wealthy most likely to give gifts to their children?

Brown Shipley, a Quintet Private Bank, asked the 800 of the UK’s wealthy this question. These were defined as over £100,000 ($133,631) in assets and 350 of whom had more than £250,000.

The bank found that there were regional differences. In London, seven in ten (73%) of the wealthy with families said they will gift money to their children. However, this falls to 31% in the North East.

In the East of England, six in ten (63%) stated they wanted to gift money to their children, 58% in the South West, 57% in Wales, Yorkshire & Humber was 53% and 50% of the East Midlands.

In addition, respondents revealed that only six in ten (58%) children of the wealthy in the East Midlands should expect an inheritance. Nationally, the average was 82% and regions such as London, Wales, Scotland, and the West Midlands were over 95%.

Philanthropy and charity were also key aspects of the research with 34% of the East Midlands and 27% of the North East planning to donate part of their wealth.

However, some areas are now so giving, such as the North West (4%) and Yorkshire & Humber (12%).

Alan Mathewson, chief executive of Brown Shipley, said: “Whatever the wealthy intend to do with their money – either through gifting or donating – it is vitally important they seek financial planning to ensure they act in the most tax efficient way.”

Source: Brown Shipley