Inheritance. The word makes us immediately think of rich uncles that we never got to meet, but who thought about us. Aww, that’s just precious. The reality is that a lot of Britons are hoping for an inheritance, which we think is definitely terrible financial advice. The reality is that you don’t want to try to go on just an inheritance — it may never come. Even if you know that your aging parents have done “all the right things” and built up quite the savings, there are little things that really can take away from your inheritance chances.
First and foremost, you never know if they would rather leave their assets to charity or not. If they feel that you can manage on your own, they may start thinking about the millions of people suffering all around the world. There are plenty of people far worse off than you, but you probably aren’t thinking about that. You’re hoping that your parents will remember you. They may, but they may feel that you should be grateful for what has already been given. Think about it — aren’t there things that you could be doing with your money, but choose not to?
What about their home — surely they will leave that to you, right? Don’t be so sure. Many retirement-age Britons are choosing to go with a lifetime mortgage of some type. This means that they are giving the house over to the mortgage company after they pass on or need to move to long term care. This means that it’s no longer about passing property to their heirs — it’s about making sure that they have as comfortable of a retirement as possible. Considering the cost of living has increased dramatically since you were a child, it’s no surprise that your parents are probably trying to do everything they can to have some sort of comfort. When you are ready to reach retirement age, you will certainly appreciate the type of strain that they were really under at the time.
A lifetime mortgage doesn’t wipe out every last bit of the inheritance that you would receive, but if you’re hoping to quit your job and live off your inheritance, it just won’t happen. Worse case is that you’ll receive enough to have a few fancy dinners and that’s about it, or something to put in care of your children’s education later down the road.
Thinking about the future can make you feel tired, and with good reason — things aren’t at their best. Yet that doesn’t mean that the best cannot come eventually. You just need to make sure that you’re focusing on your own financial blueprint more than what your parents are doing. You only have a finite amount of time left with your parents, so it’s time to enjoy them and not worry about what they’re going to leave to you. That’s the real way to go!