More evidence of increasing wealth gap

ukcarper

cells wrote: »

Here is a breakdown of what people leave as inheritances bear in mind most estates are left to multiple people not just to one person. Also bear in mind this data is a few years old and the figures are likely a good deal higher today

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/541407/Table_12-3.pdf


It shows roughly for 2013-14

2,300 estates of over £2m left
6,000 estates of £1m-£2m left
22,000 estates of £500k to £1m
55,000 estates of £300k to £500k
43,000 estates of £200k to £300k
72,000 estates of £100k to £200k
35,000 estates of £50k to £100k
26,000 estates of £10k to £50k

That is over 200,000 estates leaving at least £100k

multiply the above by 30 to get an idea of the numbers leaving estates per generation and once more these are old figures the new ones will be a good deal higher!

So we have ~6 million estates per generation leaving at least £100k (its more likely ~6 million estates per generation leaving at least £150k for the current year)

Are people still going to try to dismiss this as a side note not worth considering. its the elephant in the room

a quick Google shows there are 500,000 deaths a year so there are 250,000 people leaving less than £10,000.

cells

ukcarper wrote: »

a quick Google shows there are 500,000 deaths a year so there are 250,000 people leaving less than £10,000.

what do you conclude from that?

Also what about those who leave everything to their spouse that is not in the data I posted. So effectively they leave it to their wife/husband who then dies at a later time and leaves it to their kids or whoever. That effectively shows up as two deaths but one estate.

ukcarper

cells wrote: »

what do you conclude from that?

Also what about those who leave everything to their spouse that is not in the data I posted. So effectively they leave it to their wife/husband who then dies at a later time and leaves it to their kids or whoever. That effectively shows up as two deaths but one estate.

I conclude that a lot of estates leave less than £10,000 most people's main asset is thier home and over 40% of population do not own a property.

mrginge

cells wrote: »

see my post above, 6 million estates of >£100k (likely >£150k with updated info for this year) are left each generation.

You dont think 6 million estates of at least £100k is significant? You dont think 6 million estates is a broad spread? That money will be going to at least 12 million people as most estates leave to 2 or more people. That is 12 million households and each household has ~2.4 people in it so ....

The main thing I notice is that you've suddenly realised that using average was complete rubbish.
Still, no need to thank me for pointing that out to you.

I think that six million estates of 100k is significant. Of course, not that significant if you half, or third it for multiple children.

Also not that significant in the grand scheme of things when you consider that relatively few people will inherit that money until they get well past their 30s. Personally I wouldnt expect to see a penny of inheritance until I get past 50.

So all those 30somethings have to hang around spending their money on expenditure (i.e. Rent) before they finally get their hands on the means to actually buy a stake in an appreciating asset.

cells

ukcarper wrote: »

I conclude that a lot of estates leave less than £10,000

How many of these are spouses leaving what they own to their husbands/wives and thus you should disregard?

most people's main asset is thier home and over 40% of population do not own a property.

what proportion of elderly own their own home? It must be higher than the average.

ukcarper

cells wrote: »

How many of these are spouses leaving what they own to their husbands/wives and thus you should disregard?




what proportion of elderly own their own home? It must be higher than the average.

About 72% of people over 75 own and 78% of people between 64 and 75 so about 25% of people dying do not own a property.

cells

mrginge wrote: »

The main thing I notice is that you've suddenly realised that using average was complete rubbish.
Still, no need to thank me for pointing that out to you.

I knew all this well before this thread I have posted about it before on these very site.

The main thin you notice is that the sums are significant and not your guess that it was all skewed by a few very rich individuals leaving huge sums

I think that six million estates of 100k is significant. Of course, not that significant if you half, or third it for multiple children.

The 6 million-TH is £100k (or rather likely £150k now) and percent above that is higher.

4 million estates are for >£200k (or rather likely >£300k now)

Even the lowest 6 million-TH estate split by two people is significant people were crying that it was impossible to save £10k for a deposit now a gifted £50k is 'not that significant'??

Also not that significant in the grand scheme of things when you consider that relatively few people will inherit that money until they get well past their 30s. Personally I wouldnt expect to see a penny of inheritance until I get past 50.

Ive read reports that say aprox 20% of recipients of inheritances are 30 or younger that would mean 1.2 million estates per generation go to those that are 30 or younger. More importantly I suspect gifts are more geared to the young

So all those 30somethings have to hang around spending their money on expenditure (i.e. Rent) before they finally get their hands on the means to actually buy a stake in an appreciating asset.

All? 37% of those age 25-34 own their own home and 18% rent from the council.

9% of those age 16-24 (reference person) own their own home.
37% of those age 25-34
59% of those age 35-44
69% of those age 45-54

It does not break it down to 30-40 age group but by the looks of it its going to be between 37% and 59% of which the midpoint is 48% own their own home hardly none of them as your post states

cells

ukcarper wrote: »

About 72% of people over 75 own and 78% of people between 64 and 75 so about 25% of people dying do not own a property.

well that means 75% do and presumably most people only have one mother and one father so that 75% spreads down their wealth quite evenly

This backs up my view that most people do pass on wealth and most people will receive significant sums (although this thread has gone from £10k being a an impossible sum to save for a deposit to £100k being not all that much spread between two children. go figure)

ukcarper

cells wrote: »

well that means 75% do and presumably most people only have one mother and one father so that 75% spreads down their wealth quite evenly

This backs up my view that most people do pass on wealth and most people will receive significant sums (although this thread has gone from £10k being a an impossible sum to save for a deposit to £100k being not all that much spread between two children. go figure)

In excess of 350,000 of the people who died in 2015 were over 75 how old would thier children be.

cells

ukcarper wrote: »

In excess of 350,000 of the people who died in 2015 were over 75 how old would thier children be.

probably 45-50

what does that tell you?

that parents never gift to people age 20-40?
that grandparents never do that?
That parents/grandparents never leave anything in their wills for those age 20-40?

and even if a 75 year old woman dies and leaves £300k to her two children aged 45 and 50 does that mean the children who are 45-50 are in a better or worse position to help their own children age 20-25?


Also on a slight side topic, why is a pension worth £200k counted as a persons wealth when an inheritance of £200k in the future not? both might be unaccessible until age 55 so should they be treated that differently when talking about it in general terms as in this discussion?