Younger people are inheriting earlier: what families should do
Last verified: 5 November 2025 (England & Wales)Quick-read summary
Earlier inheritances are becoming more common as parents help their adult children sooner and as estates are passed between generations more quickly. The risk is that beneficiaries often have no Will, no trust, and no LPAs of their own. That breaks the chain of protection parents carefully set up. The practical fix is simple. Encourage beneficiaries to put basic documents in place now so the plan remains intact when money changes hands.
Why earlier inheritances are on the rise
Some parents are gifting or advancing inheritances to help with deposits and rising costs. Others die younger than expected, or wealth is depleted sooner, because previous generations have already paid off their mortgages. Whatever the cause, the effect is the same. Significant value accrues to beneficiaries who may not yet have their own plans.
What this means in practice
When a parent’s plan is strong but a beneficiary’s plan is weak, the overall family outcome can be significantly altered. Outright gifts can be exposed to intestacy problems, mixing with partners’ finances, divorce, creditors, or poor timing for children.
Continuity planning between generations
Many families now coordinate estate and financial planning with a will writer and a financial adviser. The right mix of Will, Trust and LPAs protects parents’ assets and sets clear instructions. Parents should strongly encourage beneficiaries to take the same care with what they may inherit. A short Will appointment and sensible use of trusts can preserve decades of careful planning.
Separated but still married
Parents leave a £500,000 share to their adult son. He dies intestate while still legally married but living apart. Under current rules, the spouse takes the first £322,000 plus half of the residue of £178,000. That is £411,000 (approximately 82%) to the spouse and £89,000 (approximately 18%) to be shared between the children. The spouse also receives personal chattels. These include cars and other belongings, so the spouse’s overall share can approach about 90% of what the son owned.
Has a Will but no trust: later divorce.
Parents leave £400,000 to their son outright. Twelve months later, he begins divorce proceedings. Inheritances are usually non-matrimonial, so they are not automatically shared. Here, the money was paid into a joint account and used for household spending and renovations. Because the funds were mixed, the court could treat part of the inheritance as available to meet needs in the settlement. A well-drafted discretionary trust would have reduced that exposure, although courts can still view potential trust benefits as a resource.
Best practice for parents
• Keep outright gifts modest unless the beneficiary already has a Will and basic protections.
• Where sums are significant, consider a Will trust that protects value for the long term while still looking after the beneficiary day to day.
• Make any lifetime support purposeful and documented. Keep records of what was given, when, and why.
• Encourage beneficiaries to keep inherited funds separate unless advised otherwise.
• Suggest a short review meeting for beneficiaries after any gift or inheritance.
Best practice for beneficiaries
• Make a valid Will that names guardians and trustees.
• Consider whether a trust is sensible for timing, control, or family protection.
• Keep inherited funds in a separate account if appropriate. Avoid mixing with joint accounts until you have taken advice.
• Put LPAs in place so someone you trust can help if you are unwell.
• Review protection policies and nominations so they align with your Will and any trust.
Key points to remember
• Earlier inheritances can help, but they can also magnify gaps in the beneficiary’s planning.
• Intestacy can divert assets in directions the family never intended.
• Inheritances are usually classed as non-matrimonial, but courts can still take them into account to meet needs, especially if the funds have been mixed.
• Simple steps by beneficiaries protect the family plan across generations.
FAQs
Are inheritances always split on divorce?
No. Inheritances are usually treated as non-matrimonial. They are not automatically shared. However, if resources are limited or the funds have been commingled with family finances, the court can take them into account to meet the needs.
Should parents always use trusts?
Not always. Outright gifts work well for smaller sums and straightforward situations. Trusts are useful when timing, control, remarriage risk, or protection for children and grandchildren is a concern.
What are personal chattels in intestacy?
Everyday possessions, vehicles, furniture, jewellery, and similar items. In the event of intestacy, these assets pass to the spouse or civil partner first, which can increase the spouse’s overall share of the estate.
Do LPAs matter for beneficiaries?
Yes. LPAs enable trusted individuals to assist with financial or healthcare decisions when necessary. They keep things running smoothly and prevent delays in the event of unexpected issues.
Practical checklist
• Parents: confirm your Will structure and letter of wishes still match your aims.
• Parents: decide whether a life interest or a discretionary trust would better protect the value for family use.
• Beneficiaries: make a simple Will and name guardians if you have children.
• Beneficiaries: consider a trust if you want control over timing or to protect value for your children.
• All: keep good records and review every three years or after any significant change.
Who this article is for
Parents planning to help adult children. Adult children who expect to inherit. Anyone who wants their family plan to work as intended.
Next steps
If you would like a brief, no-obligation discussion about the proper structure for your family, please request two example dates and times. Meetings can be by phone, video, or in person locally. We will explain options and costs in plain English and outline a simple plan that fits your situation.
