Housing minister: we should pass on wealth to grandchildren
Housing minister thinks people should pass on wealth to their grandchildren rather than their children to help them on to the housing ladder. Do you agree?
Parents should skip a generation and pass wealth to their grandkids rather than their children, according to Housing Minister Gavin Barwell.
This would help to combat 'inter-generational unfairness' and help younger generations on to the property ladder.
Barwell says his own mother is planning to leave her estate, including a £750,000 home, to her five grandchildren.
His call coincides with new research from equity release firm Age Partnership, which suggests that over-55s in England have more wealth locked away in their homes than the entire GDP of Italy.
They currently own property collectively worth £1.5 trillion - £100 billion more than annual Italian GDP.
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Out of touch?
However, critics have accused Barwell of being "out of touch", adding that the move would only benefit the wealthy.
Jacqui Bateson, senior propositions manager at Skipton Building Society, added: “Receiving inheritance from a relative to benefit your own future is not going to be a reality for most.
"Skipton Building Society’s Retirement Index shows that not everyone has the luxury of wealth during retirement to enable them to pass money on to their loved ones; only 7% of the 3,000 people we surveyed were able to class themselves as well off and fewer than 20% had Inheritance Tax plans in place.
“It seems the younger generations are aware of this, as only 12% of them are expecting to receive inheritance to fund their future."
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Tell us your thoughts
So, is it a pragmatic solution to a challenge many younger Brits will face, or is it an impractical idea that only the richest could consider anyway?
Tell us what you think by voting in the poll below and sharing your views in the comments section.
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