A lack of conversations about inheritance planning is resulting in “significant tension” between family members, according to research as part of Canada Life’s Life100+ programme.

Its study found that 18 per cent of UK adults have had a dispute within their family due to a lack of discussions about inheritance planning.

Nearly a quarter (24 per cent) stated that avoiding conversations about inheritance planning could lead to disputes in the future.

Canada Life’s research aimed to explore the reasons by people did not want to talk about their inheritance plans with their family, with the most common reasons being that people were not planning to leave inheritance to family or a loved one (19 per cent), and that they had not started inheritance planning yet (19 per cent).

One in 10 (10 per cent) people said they did not talk about finances as a family, rising to 13 per cent of people aged 55 and over.

Meanwhile, one in 20 (5 per cent) stated that they tried to have conversations about inheritance plans, but their relatives or loved ones did not want to discuss it.

Among those expecting to receive an inheritance, the main reason for avoiding discussions was that the possibility of receiving and inheritance was ‘too far in the future’ (29 per cent).

Other reasons cited were that people ‘prefer not to think about it’ (26 per cent), some consider it ‘their business and no one else’s’ (21 per cent), while others find it ‘too difficult to discuss’ (14 per cent).

While 37 per cent felt that previous generations had been ‘closed’ regarding family inheritance planning, younger generations were more likely to be more open, with 43 per cent planning to discuss inheritance more openly than their older family members.

Despite these intergenerational differences, 60 per cent believed that more transparency would help family members understand where they stand with inheritance, while 41 per cent said it would minimise legal complications in the future.

Respondents also felt that having more transparent conversations about inheritance would have a positive impact on fairer distribution of assets (35 per cent), reducing misunderstandings or conflicts (34 per cent), improved ability for family members to plan their financial futures (34 per cent), and stronger family relationships (26 per cent).

Furthermore, while many were hesitant to engage in inheritance conversations, 31 per cent of those who had lost parents wished they had.

“Discussing inheritance can be challenging for many families, with some believing that avoiding it may help maintain harmony in the short term,” said Canada Life tax and estate planning specialist, Stacey Love.

“However, our Life100+ research reveals that avoiding these conversations often leads, or has the potential to lead, to conflicts within families.

“To prevent these issues, we need a shift toward transparency. It’s encouraging to see that more than two-fifths of people plan to discuss inheritance more openly than previous generations, breaking the taboo around inheritance and later-life planning. Open conversations can ensure intentions are clear, reduce potential conflicts, and better prepare loved ones for the future.

“By fostering a more openminded approach, families can build stronger relationships and reduce misunderstandings over time, as well as feel more in control and satisfied with outcomes.

“Working proactively with a financial advisor can be an essential step, as they can provide valuable guidance and advice in an often-complex situations, to make inheritance planning smoother, more manageable, and easier to communicate to loved ones.”

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