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Who's Not In Line To Inherit A Property?

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I've thought about this before but after reading a couple of threads where people are, yet again, spitting their dummies out about the 'greedy' boomers, wondered who out there, is not in line to inherit a property?

I'm not, incidentally.

We talk constantly about the down sides to the property boom (well deserved in most cases) but hasn't this, for many people, actually brought a benefit?

When I was a kid most people had council houses, in fact I bet I'd have trouble counting the number of people on one hand who were going to be lucky enough to 'inherit.' Yet now, when I look around I can't think of one single person who won't. Not one.

For me this has sort of become the elephant in the room. It's there, millions will benefit, yet it's never brought up.

I now know (didn't originally) that most people on this forum are well paid middle-class and so it's probably a bit skewed, but was wondering out of us lot who wasn't in line to inherit a property and get a fair old boost to their lifestyle?

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With property prices so absurd in parts to he country and wages being driven to third world levels.. its amazing how much it matters now in terms of material wealth.. whether or not the person gets a property inheritance.

Like someone in a big city where the parents die with a nice old house on a nice property worth say £600,000. The two kids split it getting £300k each. Well the median wage in Britain is something like £8 an hour.

So that is £16,000 a year before taxes. That would take 20 years of work to get that much money if they saved 100% of their income. Lets just round it up and say it would take the spouses entire after tax income of their lifetime.

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I suppose really I'd got it wrong because it's not all related just to this boom - it's back to the selling off of council houses and the general 'ownership' mentallity - but you're right about the amounts. If I was due to inherit something even of 80k, I'd be laughing.

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With property prices so absurd in parts to he country and wages being driven to third world levels.. its amazing how much it matters now in terms of material wealth.. whether or not the person gets a property inheritance.

Like someone in a big city where the parents die with a nice old house on a nice property worth say £600,000. The two kids split it getting £300k each. Well the median wage in Britain is something like £8 an hour.

So that is £16,000 a year before taxes. That would take 20 years of work to get that much money if they saved 100% of their income. Lets just round it up and say it would take the spouses entire after tax income of their lifetime.

Exactly, don't you just love a ponzi scheme.

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I suppose really I'd got it wrong because it's not all related just to this boom - it's back to the selling off of council houses and the general 'ownership' mentallity - but you're right about the amounts. If I was due to inherit something even of 80k, I'd be laughing.

Where it relates to the boom is that a lot of the buyers of real estate are using inherited money to buy. Money inherited from the house of their parents.

Most times I see inheritances I see people blowing some of the money but putting a great amount of it right back into the real estate market by buying something themselves.

So often we look and say hey house prices are really out of line with incomes, but we might not be factoring in the impact that the widespread inheritance is having.

If you inherited 80k which is quite common.. then buying the median house price in Britain which is what 165k? That would be no big deal.

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Hadn't actually thought about people moving it back into the property market, mainly what I've seen is people paying off their mortgages, doing up their houses and generally improving their quality of life and future security.

But you're right, it would be interesting to know just how much it has either contributed to the boom, either in that people have already inherited or regarding their estimation of risk - if you know you're going to be able to pay it off in a few years then you'll go that extra mile, right?

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I've thought about this before but after reading a couple of threads where people are, yet again, spitting their dummies out about the 'greedy' boomers, wondered who out there, is not in line to inherit a property?

I'm not, incidentally.

We talk constantly about the down sides to the property boom (well deserved in most cases) but hasn't this, for many people, actually brought a benefit?

When I was a kid most people had council houses, in fact I bet I'd have trouble counting the number of people on one hand who were going to be lucky enough to 'inherit.' Yet now, when I look around I can't think of one single person who won't. Not one.

For me this has sort of become the elephant in the room. It's there, millions will benefit, yet it's never brought up.

I now know (didn't originally) that most people on this forum are well paid middle-class and so it's probably a bit skewed, but was wondering out of us lot who wasn't in line to inherit a property and get a fair old boost to their lifestyle?

I am middleclass by upbringinging but working class by life choice. If things go a certain way myself and my wife stand to gain a portion of SIX properties, let me explain

My Mum & Dad - Own House worth £350k split two ways = £175k

Uncle & Aunt - Own house worth £600k plus £150k holiday home split between nephews & nieces (they had no kids) five ways = £125k

Uncle & Aunt - Own house worth £500k split between nephews & nieces (they had no kids) seven ways = £75k

Wifes Mum - Own House worth £180k split two ways = £90k

Wifes Dad - Own House worth £120k split two ways = £60k

Total = £525k HALF A MILLION POUNDS

I have just added this up and blown my own mind, all this due to baby boomers/divorce/and not having kids

Mark

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If you inherited 80k which is quite common..

But at what age?

E.g. a friend of mine lost his mother about 18 months ago (his father passed away 2 years before that). He's 56 years old.

Another example. A friend of mine is 37. Here parents are in their 50s. When they die, she should share their estate with her sister (including a house).

But her parents could easily live another 20, 25 or 30 years.

In 30 years time my friend will be 67 and her daughter 46.

Maybe her as-yet-unborn grandchildren might be able to use the money to get on the housing ladder, everyone else will have already done so.

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I've thought about this before but after reading a couple of threads where people are, yet again, spitting their dummies out about the 'greedy' boomers, wondered who out there, is not in line to inherit a property?

I'm not, incidentally.

We talk constantly about the down sides to the property boom (well deserved in most cases) but hasn't this, for many people, actually brought a benefit?

When I was a kid most people had council houses, in fact I bet I'd have trouble counting the number of people on one hand who were going to be lucky enough to 'inherit.' Yet now, when I look around I can't think of one single person who won't. Not one.

For me this has sort of become the elephant in the room. It's there, millions will benefit, yet it's never brought up.

I now know (didn't originally) that most people on this forum are well paid middle-class and so it's probably a bit skewed, but was wondering out of us lot who wasn't in line to inherit a property and get a fair old boost to their lifestyle?

Well my parents didn't have a pot to wiss in. Cost me my savings to bury them both. Not bitter but a little miffed on reflecting on your points.

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Well for starters, to get that security at any age - to know it's coming - is a great ease, but what I've also noticed is that people aren't (as in Mark's post) just inheriting from parents.

I've seen a heck of a lot from grandparents and, believe it or not, aunts and uncles. And most of these couples were in their thirties. Plus, as Mark said, they are also in line to then inherit from parents at a later date.

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Guest DestroyBrown

I've thought about this before but after reading a couple of threads where people are, yet again, spitting their dummies out about the 'greedy' boomers, wondered who out there, is not in line to inherit a property?

Simple.

Do a search for an IHT thread, then count the number of posters who give you every reason in the world why it's right and fair for the govt to steal everything that your parents worked for.

IHT is one of those areas which highlights the attitude in the UK (and one which I detest). The same attitude that causes people to vote for New Labour. "If someone has something that I don't, punish them!" The fact that my mother and father half killed themselves to get a nice home and that perhaps their mothers and fathers spent every night drinking, smoking and playing bingo, seems to completely surpass them. I would imagine most people are in for some kind of inheritance - it's always been easier to buy a house than it is right now.

Like another poster said, inheritance is the ONLY way some people will get their own place.

Edited by DestroyBrown

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Simple.

Do a search for an IHT thread, then count the number of posters who give you every reason in the world why it's right and fair for the govt to steal everything that your parents worked for.

IHT is one of those areas which highlights the attitude in the UK (and one which I detest). The same attitude that causes people to vote for New Labour. "If someone has something that I don't, punish them!" The fact that my mother and father half killed themselves to get a nice home and that perhaps their mothers and fathers spent every night drinking, smoking and playing bingo, seems to completely surpass them.

Like another poster said, inheritance is the ONLY way some people will get their own place.

But doesn't that also raise the issue of how we are going to see a greater social divide? Okay the people at the bottom may be fewer, but they are going to be well down on the rest?

I don't want to mislead you here. I have my own property bought and paid for BUT there are a few biggies. A) it's in a cheap and remote area of the country, B) It's a right mess and will stay that way for the foreseeable future, and C) I do without most of the stuff people see as a right (I haven't had a holiday for over 25 years)

Hope I'm making sense.

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fortunately but unfortunately in this respect both my wife and i are upwardly mobile in a socioeconomic sense. this means that the gap between the combined current market value of our parents' houses, even assuming we inherited both of them [incidentally we have five siblings between us so i guess only stand to inherit basically seven twelfths of a pwoperdee], & the current market value of the type of thing that people in our current line of work would have been able to buy fifteen years ago is a good half million pounds.

this, combined with inheritance tax and the fact that we'd be unlikely to inherit anything till we're a way into our sixties [we're both the eldest child of working class parents who bred young] means that gloating over my vast pwoperdee inheritance isn't something that i tend to spend a lot of time doing.

Edited by the flying pig

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There is no disputing the fact that inheritance has increased substantially in the last decade, mainly as a result of the property boom. As one poster has stated, a significant inheritance could be equal to the lifetime earnings of an average earner. We've got to the stage now where the main predictor of your lifestyle Is how rich your parents are. This has become a major barrier to social mobility and is to the detriment of society. We are heading back to Victorian times when property was almost exclusively owned by a rich elite.

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Guest DestroyBrown

But doesn't that also raise the issue of how we are going to see a greater social divide? Okay the people at the bottom may be fewer, but they are going to be well down on the rest?

I don't want to mislead you here. I have my own property bought and paid for BUT there are a few biggies. A) it's in a cheap and remote area of the country, cool.gif It's a right mess and will stay that way for the foreseeable future, and C) I do without most of the stuff people see as a right (I haven't had a holiday for over 25 years)

Hope I'm making sense.

We're always going to have social divides. Life can never be totally "fair" and total equality can never be achieved. (that's why New Labours rhetoric is total bull)

For example, some people are born clever, some aren't. Some women are born attractive and can spend their young life earnings $$$$ from flashing their assets, others have to scrub floors. ....it's the way of the world.

Some people get nice jobs because their father pulls strings for them....and so on... I've always wanted to know why media 'stars' get paid so much. Why does Phil Mitchell get paid more than a consultant surgeon at the top of his game?

As for my plight, I stand to inherit half of my parents assets one day (they're not rich BTW). I made the error of not buying a house when I had the chance - before the boom took off. The number of times I've kicked myself......but how was I to know? History has punished me for not "buying at the right time". I'm in my mid thirties and remain a renter. A friend of mine (same age) bought before the boom, he's home and dry now.

I find it offensive that in the light of me being priced out of the market, having not much of a life whislt I save like crazy, someone thinks it right that my inheritance should be snatched by the govt.

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Guest DestroyBrown

There is no disputing the fact that inheritance has increased substantially in the last decade, mainly as a result of the property boom. As one poster has stated, a significant inheritance could be equal to the lifetime earnings of an average earner. We've got to the stage now where the main predictor of your lifestyle Is how rich your parents are. This has become a major barrier to social mobility and is to the detriment of society. We are heading back to Victorian times when property was almost exclusively owned by a rich elite.

Aside from inheritance, just sit and think for a minute of all the (non hardworking) "methods" that can make you wealthy today, that just weren't possible in Victorian times.

If life was totally fair and equal, I'd be much further ahead in this great race than many of my peers.

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We're always going to have social divides. Life can never be totally "fair" and total equality can never be achieved. (that's why New Labours rhetoric is total bull)

For example, some people are born clever, some aren't. Some women are born attractive and can spend their young life earnings $$$$ from flashing their assets, others have to scrub floors. ....it's the way of the world.

Some people get nice jobs because their father pulls strings for them....and so on... I've always wanted to know why media 'stars' get paid so much. Why does Phil Mitchell get paid more than a consultant surgeon at the top of his game?

As for my plight, I stand to inherit half of my parents assets one day (they're not rich BTW). I made the error of not buying a house when I had the chance - before the boom took off. The number of times I've kicked myself......but how was I to know? History has punished me for not "buying at the right time". I'm in my mid thirties and remain a renter. A friend of mine (same age) bought before the boom, he's home and dry now.

I find it offensive that in the light of me being priced out of the market, having not much of a life whislt I save like crazy, someone thinks it right that my inheritance should be snatched by the govt.

Who said that DB?

I don't think I could ever be said to think that life either was, or was going to be, fair. My point really came from the fact I was getting a bit sick of hearing a few things. The first one was people around me on a day to day basis telling me they were skint. And then, lo and behold, they were paying off mortgages, buying new cars etc. and it dawned that they were inheriting.

The second fact was that I'm fed up of hearing about this mythical boomer and how generations have been robbed by the previous one. When, in actual fact, they are going to have their lives eased considerably by the boomers in many cases.

I agree wholeheartedly about the non-working comment. How many people on here want to see money 'work' for them, without lifting a finger - quite possibly a different thread though.

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Guest DestroyBrown

Who said that DB?

I'm not picking at you Dipstick, I'm just reflecting attitudes that I've seen on countless HPC threads about IHT.

Strictly speaking, inheritance does skew things but so did the whole HPI boom. Outside of this website I hear people groaning about inheritance but I don't hear people groaning about the immense evil and unjustness of the HPI boom.

People have become 'rich' through inheritance and others have become rich because society decided to reward stupidity and recklessness. A BTL flipper who started off with less dosh than I've earnt has been in a position to rent "his" property out to me, thanks to reckless bank lending. Insane!

The difference between these 2 scenarios is that the inheritance was earnt and taxed initially. The BTL wealth is just a straightforward steal from one person to another.

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Personally I am expecting the exorbitant costs of nursing home care to whittle down any inheritance to a much smaller level. And being one of 4 children (and with lots of cousins, etc) I don't base any of my financial decisions on the idea of receiving an inheritance sum.

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Unless you are a very desperate to get your hands on a house, you will probably wish your parents a long and happy life. If we look at 80ish as being a typical time for a woman to die, you are unlikely to get your hands on a property much before you are 50 anyway, the sort of age when your own children might be knocking on the door of the bank of mum and dad.

The thought that I will probably inherit when I am 50-odd, does not sort out this current mess.

Edited by Ah-so

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I'm not picking at you Dipstick, I'm just reflecting attitudes that I've seen on countless HPC threads about IHT.

Strictly speaking, inheritance does skew things but so did the whole HPI boom. Outside of this website I hear people groaning about inheritance but I don't hear people groaning about the immense evil and unjustness of the HPI boom.

People have become 'rich' through inheritance and others have become rich because society decided to reward stupidity and recklessness. A BTL flipper who started off with less dosh than I've earnt has been in a position to rent "his" property out to me, thanks to reckless bank lending. Insane!

The difference between these 2 scenarios is that the inheritance was earnt and taxed initially. The BTL wealth is just a straightforward steal from one person to another.

I think we are probably singing from the same hymn sheet.

I don't begrudge people inheriting (although I do begrudge them making out they're skint) and I actually wonder where we would be without the inheritance situation.

I also agree that there has been too much easy money made by stupid people - or are they stupid if they've made the money - Okay, maybe they are just stupid because when things settle down they'll be wondering what's hit them.

And you're right about the timing. Nobody was sat around their pc in the late nineties wondering if it was the right time to buy. Some just bought, others didn't and then all hell broke loose. You were either lucky or not, for the majority it wasn't anything to do with being clever.

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Personally I am expecting the exorbitant costs of nursing home care to whittle down any inheritance to a much smaller level. And being one of 4 children (and with lots of cousins, etc) I don't base any of my financial decisions on the idea of receiving an inheritance sum.

Ditto. If my parents have enough to cover themselves I will be happy. Anything more than that will be an unexpected bonus. I am certainly not planning for it. I also come from a large family - 7 kids though. :P

Maybe there is something in this ? Most people from big families don't even consider/plan getting a huge wad of cash in their pocket some decades in the future.

In fact - this has got me thinking - do more entrepreneurs come from big families ? And if so could this be a reason why ?

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  • 259 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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