One in 10 expect to leave little cash for loved ones

Cost-of-living crisis also means fewer than half of Brits will have enough to pay for a funeral and average value of estates has plummeted by almost a quarter in past two years

DESPERATE families are relying on inheritance cash to cover their living costs – with one in six admitting they are relying on it to pay off debts or pay for food, housing and bills.

The study also revealed three in 10 also said if they inherited money in the next 12 months, they’d use it to cover living costs – four times as many as in 2020.

Soaring living costs are not only impacting people’s quality of life but also their financial legacy, according to research conducted by probate lenders at Tower Street Finance.

The study, which polled 2,000 people in the UK, revealed spiralling bills means one in 10 now expect to have nothing to leave to loved ones when they pass away.

While around three-quarters do still expect to leave some inheritance, more than half say rising living costs will ‘unquestionably’ reduce the value of their estate.

On average, the estimated total value of an estate has plummeted by almost a quarter in the past two years from £289,000 in 2020 to £221,000 in 2022.

Lower estate values are likely to be particularly worrying for those banking on receiving inheritance to get by.

But even those who are fortunate enough to be listed as a beneficiary in a will shouldn’t expect to receive their windfall quickly.

Experts advise that it currently takes nine to 12 months before a beneficiary will get receive cash from an estate as the probate process can be complicated.

Fewer than half of Brits said they would have enough money to pay for a funeral if needed (based on the average 2022 cost of £4,927).

Of those who couldn’t afford to pay for funeral costs, a third have no idea how or where they’d find the cash, while 15 per cent would borrow from relatives and 14 per cent would take out a loan.

Tower Street founder Dicky Davies said: “The cost-of-living crisis isn’t just having an impact on the now, but it’s also likely to have far-reaching impacts in the future.

“What’s particularly worrying is just how many people are depending on receiving money from an inheritance to get by day-to-day.

“Not only does our survey indicate that estate values are dropping due to rising living costs, and therefore beneficiaries should expect to receive less, but there’s also the added issue of the probate process taking time.”