Inheritances v Cost of capital v #Children/woman

cells

Clifford_Pope wrote: »

Funny then that there is apparently a housing shortage,

Im not sure its the case for a lot of the country. there is sufficient supply and prices are very affordable in most the regions of the UK

and people are desperately trying to save to buy one./QUOTE]

sure, on one end of the spectrum, on the other end there are thousands getting huge gifts and inheritances annually.

System

Cells - Your posts are worse than mine and that's saying something lol

System

Cells - Do you write for the Guardian newspaper? If not, apply for a job there.

getmore4less

cells wrote: »

this applies to some people and people project it as normal

Most recent inheritance data shows £72 billion (in one year) was handed over from one generation to the next. This does not include gifts before death which I think will be on a similar order and its 2013 data so the figures are likely to be a lot higher today than then as house prices and stocks have recovered since 2013

Also the savings rate is still positive, not negative as would be implied by the older generations spending it on carehomes

what source

about 1/2 million die each year of those about 1/2 go to grant/have tax liabilities the other 1/2 become a data hole.

A significant number of those deaths will be spouse/partner and not a transfer to the next generation. can probably make a guess from this data set
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/541411/Table_12-5.pdf

average estate of those that go to probate was around £288k

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/541725/IHTNationalStatisticsCommentary.pdf

getmore4less

it takes 3/4 generations to become self sufficient in housing if you make that a goal.

ViolaLass

cells wrote: »

sure, on one end of the spectrum, on the other end there are thousands getting huge gifts and inheritances annually.

Exactly, it's not spread evenly, leaving a lot of people who aren't going to inherit much at any age and will still need to save.

cells

getmore4less wrote: »

what source

about 1/2 million die each year of those about 1/2 go to grant/have tax liabilities the other 1/2 become a data hole.

A significant number of those deaths will be spouse/partner and not a transfer to the next generation. can probably make a guess from this data set
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/541411/Table_12-5.pdf

average estate of those that go to probate was around £288k

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/541725/IHTNationalStatisticsCommentary.pdf

Recent article suggested total wealth of the UK is £8.8 trillion (and increasing). If you take it as he 20 or under group owns close to zero of this that means by the time they are the old ones that £8.8 trillion will be theirs. If it takes 40 years that is about £220 billion a year transferred from old to young (my guess if you look at other threads is that inheritances + gifts before death are in the region of £200 billion annually)

The £72 billion figure is from your own link, it does not include spouse transfers. However bear in mind the total left from one generation to the other is far higher than just inheritances. My estimate is £200 billion annually or ~£8.8 trillion per generation.

cells

ViolaLass wrote: »

Exactly, it's not spread evenly, leaving a lot of people who aren't going to inherit much at any age and will still need to save.

sure, but seeing as many many people will its a factor not to ignore.

When people think the young have it hard or that houses are unaffordable, just remember they have £8.8 trillion heading their way. Not all of them, but most of them will share in this £8.8 trillion.

cells

getmore4less wrote: »

it takes 3/4 generations to become self sufficient in housing if you make that a goal.

If you take 30 as the age a woman has a child, by the time that child is 30 the woman is 60 and the womans mother is 90. Thus at most it takes 2 generations to own (mum and gran) for the next lot to have free housing. Gran dies and passes it on to the 30 year old...30 years later mum dies and passes it on to the childs child and this repeated indefinitely

The poor young hard up generation who cant afford homes have £8.8 trillion heading their way.

antrobus

cells wrote: »

If you take 30 as the age a woman has a child, by the time that child is 30 the woman is 60 and the womans mother is 90. Thus at most it takes 2 generations to own (mum and gran) for the next lot to have free housing. Gran dies and passes it on to the 30 year old...30 years later mum dies and passes it on to the childs child and this repeated indefinitely

The poor young hard up generation who cant afford homes have £8.8 trillion heading their way.

Your argument is economic nonsense.

The UK’s estimated financial net worth at the end of 2015 was minus £269 billion.

https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/bulletins/nationalbalancesheet/2016estimates


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