Not all wills are created equal: just 39% of Brits plan to divide their assets equally
- More than one in eight (13%) beneficiaries have received inheritance from an estate which was not divided equally
- 29 million Brits (56%) have no will in place
- Only 32% have drafted a will with professional legal support
New research1 from Direct Line Life Insurance reveals that just 39% of Brits who have drafted a will plan to divide their assets equally between beneficiaries, and more than one in ten (13%) Brits have already received inheritance from an estate which was not divided equally among the beneficiaries.
Despite almost half (49%) of those aged over 55 planning to split their estate equally, the younger generations (18-34) are driving a change toward a more selective division of assets, with just a quarter (25%) planning to give beneficiaries an equal share of their estate.
When looking at the reasons for not dividing an estate equally, 14% say some beneficiaries deserve more than others due to the way they behaved during the deceased's lifetime. Other reasons include; some beneficiaries being wealthier than others (10%), some beneficiaries being more liked than others (nine%) and the repayment of financial support that the beneficiary gave them during their lifetime (nine%).
Research amongst legal professionals2 reveals that clients drafting a will are advised to inform beneficiaries in advance if the main value of the estate is to be divided unequally. However, it appears people aren't acting on this advice as just 37% of those who have decided not to divide their assets equally tell their beneficiaries in advance. In some circumstances, this could lead to resentment between beneficiaries and increase the likelihood of legal challenges and disagreements over the estate.
The research1 reveals more than 29 million Brits (56%) haven't written a will (formal or informal), leaving their estate subject to rules of intestacy3. While 71% of those aged 18-34 do not have a will, alarmingly over a third of adults (34%, or 6.8 million) over the age of 55 also do not have a will in place, meaning that if they pass away their estate will only be shared among their direct family and any wishes they have expressed verbally will not be taken into account.
Less than a third (32%) of people has written a will dividing up their assets using professional legal support. A further seven% have used an online tool kit, which may not result in the will being legally binding if the benefactor hasn't closely followed the rules such as having the document correctly witnessed.
The most likely people to benefit from a will are the deceased current spouse or partner (34%), followed by first born children – sons (30%) and daughters (29%), ahead of younger children – sons (14%) and daughters (12%).
Jane Morgan, Business Manager at Direct Line Life Insurance, commented: "Death is never an easy topic to discuss, but should the worst happen it is a conversation you are likely to have wished you'd had. Leaving a valid will is crucial, as intestacy rules do not take into account the various family dynamics people face in the UK and can be made more complicated by multiple marriages, divorces, children and step-children.
With the number of unmarried couples also on the rise, these modern family relationships are often at risk of being overlooked"
Morgan continues: "As well as leaving a valid will, life insurance is another way for families to help look after loved ones financially if they pass away, paying out a lump sum, to help deal with every day money concerns such as household bills and childcare costs."
On a regional basis, the residents of Nottingham are least likely to have commenced estate planning, as 70% haven't written a formal or informal document on how they would like their assets divided. When it comes to a division of assets, residents of Belfast (55%) say they have split their estate equally amongst beneficiaries compared to just 30% of residents in Brighton and Edinburgh.
Table One: Number of residents that plan not to divide their will equally amongst beneficiaries
|City||Percentage of residents that have not written a will or informal document dividing their assets||Percentage of residents that have split their will equally|
Source: Direct Line Life Insurance
For more information on life insurance, please visit https://www.directline.com/life-cover/making-a-will
Notes to Editors
1 Research conducted by Opinium among a nationally representative sample of 2,002 adults between 19th and 22nd October 2018
2 Research conducted by PureProfile among 102 family law practitioners between 15th and 24th October 2018
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Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel, pet and life insurance cover direct to customers by phone or on-line.
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