Aviva highlights “pre-inheritance” trend

The traditional practice of leaving an inheritance is being replaced with a “pre-inheritance”.

Nearly half (46%) of British adults have received a pre-inheritance, money given to them out of the estate of a benefactor who has yet to die.

However, the new trend could already be on the wane, with just 17% of over-55s saying they plan to give a pre-inheritance to loved ones.

One in five (20%) of this age group said they don’t have enough money to pass on an inheritance early.

A similar number (21%) said they need to keep hold of the money they have at the moment to be financially secure in the future.

Clive Bolton, of Aviva, who conducted the research, said: “We are seeing a number of shifts in how people use their money in retirement.

“The pre-inheritance is a fairly new initiative.

“Alongside the obvious benefits of cutting the amount of money liable for inheritance tax, it also seems many benefactors like to see their money being enjoyed whilst they are still alive.”

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