Our Views

Moral ideals for expected inheritances

How do you plan to spend any inheritance you receive in the future? Despite a growing demand for inheritances to clear mortgage debts, pay for private education, and secure an income in retirement, our views are increasingly turning towards how we might help others.

Thoughts of receiving an unexpected windfall, in the form of an inheritance, are enough to get anyone thinking about the possibilities. Some new research has found that 12% of under-45s who expect to receive an inheritance in the future plans to give some of that money to a charity or other good cause.

The research carried out by Sanlam UK as part of their new report, The Generation Game, found that more than 5 million people expect to receive an inheritance of more than £50,000.

The average value of an expected inheritance, according to the research, stands at £233,000. This could mean millions of pounds are expected to be gifted to charities during the next 30 years. As well as thinking about making gifts to good causes, the under-45s also appear to be considering ethical investing options.

This includes socially responsible investing, impact investing, and venture philanthropy. According to the research, 88% of under-45s believe it’s important their wealth is not invested in something contrary to their beliefs. This compares with 80% of over-55s, suggesting more of an ethical investing priority for the younger generations.

“The findings of our survey highlight a trend that has been much discussed, the fact that younger generations increasingly want to use their wealth for good. “But it’s not only so-called ‘Generation Impact’ who are attracted to more ethical ways of investing their money, those in the over-55 age group also indicate a strong awareness of how their money is invested – indeed, 28% reported that their wealth could be used for good by not investing in companies whose products or services have a harmful effect on society or the environment. “This is a challenge for the industry. Defining what is and what isn’t ethical is a minefield, but as our report shows, an appetite for these types of products and services is not going to go away. “As people of all ages become more connected with their money and have greater visibility around how it is invested, those advising them will need to balance how to meet their desired financial returns with their moral ideals.” If charitable giving or socially responsible investing is on your mind ahead of receiving an expected inheritance, it’s essential to create a robust financial plan. We encourage clients to secure their own financial objectives first, before giving away money. When considering socially responsible investing options, or indeed any type of investment, it’s essential to make these decisions within a framework linked to achieving your financial goals in life.

Carl Drummond, a senior wealth planner at Sanlam UK, said

At Juniper Wealth Management we take Ethical and Positive solutions based investing very seriously and have a range of options for clients looking for specific Ethical Investment criteria or just to make a positive impact with their money.

For more information please contact us or schedule a meeting now

Jon DoyleMoral ideals for expected inheritances