According to the latest research, 28 per cent of retirees intend to leave their estate to beneficiaries that are not close family members.
The study found that individuals in their older age will gift their estate to friends and neighbours that they have supported them in later life.
There may be many reasons why pensioners look to individuals other than close family members to bequeath their estate to, highlighting the importance of creating and maintaining an up-to-date Will.
Separate research has also found that a growing number of retirees are concerned about funding care costs later in life, with a quarter of homeowners intending to use the equity in their homes to pay for care fees.
Leaving a legacy or gift to charity is also becoming more popular, with many individuals becoming aware of the associated inheritance tax (IHT) benefits of charitable giving.
Rob Cope, Director of Remember A Charity, said: “The nation’s appetite for legacy giving is growing but there is a disconnect between the proportion of people that intend to leave a gift in their Will (40 per cent of over 40s) and the 6 per cent that actually do so.
“Although the large majority of people understand they can leave a gift in their Will, there is often the assumption that charitable bequests have to be particularly large, that they are complex to arrange or that they might prevent their children from inheriting.”
If you wish to leave your estate to a friend, neighbour or to specific individuals, then it is vital that you create a Will and keep it updated.
This is because if an individual dies without a Will in England and Wales, their assets are distributed in accordance with Intestacy Rules, which could mean that your wishes are not adhered to.
It’s important to seek professional legal advice when creating a Will to avoid any costly mistakes and unnecessary complications in the event of your death.
For help and advice with matters relating to Wills, contact our expert Private Client team today.