Passing on wealth: attitudes, awareness and the hidden risks

Lloyds Wealth research highlights a clear picture: people care about passing on wealth, but many are still navigating how to do it effectively and the risks of not planning properly may be greater than expected.

Encouragingly, passing on wealth is firmly on the radar for many households. Just over half of people (53%) say it’s an important part of their future planning, alongside priorities like supporting family (85%) and retirement (72%).

But what stands out most is the mindset behind this. Around two thirds (66%) say their goal is to strike a balance between enjoying life now while still leaving something behind. A smaller group (26%) aim to pass on as much as possible, while very few say they haven’t thought about it at all.

This reflects a very human tension: the desire to live well today without compromising the legacy we leave behind. It’s not about choosing one or the other, it’s about finding the right balance, and that often requires careful planning.

Many people have already taken some steps. Around 57% have discussed their wishes with family, just over half (52%) have written or updated a will, and a similar number have ensured their pension beneficiaries are nominated.

However, beyond these initial actions, momentum tends to slow. Fewer than half (42%) have sought professional advice on inheritance or estate planning, and only around a quarter (24%) have considered more proactive strategies such as lifetime gifting.

This suggests that while awareness is relatively high, follow-through can be limited. In many cases, plans may exist but they may not yet be fully joined up, optimised, or regularly reviewed.

When asked how they feel about their current arrangements, the responses reveal an important insight. Nearly half (48%) say they’ve made a start but still have gaps they need to address. Only one in four (26%) feel confident their plans are in good shape, while around one in five (21%) admit they know they should act but haven’t yet.

This “planning gap” is one of the biggest hidden risks when it comes to passing on wealth. It’s not that people are ignoring the issue entirely, it’s that many are somewhere in the middle: part-prepared, but not fully protected.

Without a clear, coordinated plan, there’s a risk that intentions don’t translate into outcomes.

Another key theme emerging from the research is concern about tax. Around half of respondents (50%) worry that inheritance tax could reduce what their family ultimately receives. A similar proportion are concerned about the possibility of beneficiaries facing both inheritance tax and income tax.

Beyond the financial impact, there’s also unease about complexity. Around 45% point to the uncertainty of future tax rules as a key concern, while others worry about having to rethink existing plans.

This highlights an important reality: passing on wealth isn’t just about building assets, it’s about understanding how those assets will be treated when they are eventually transferred. Without careful planning, tax could significantly reduce what is passed on.

Remember that tax treatment depends on individual circumstances and current legislation, which can change over time, meaning the amount your beneficiaries receive may differ from what you expect today.

While the financial risks are significant, the emotional drivers are just as powerful. Seven in ten people (74%) say they are at least somewhat worried that failing to plan ahead could make things harder for their family.

This sense of responsibility is often what prompts action but it can also lead to procrastination if people feel unsure where to start or overwhelmed by the options. In fact, some of the strongest motivators for taking action are surprisingly simple. The top trigger, cited by 44% of respondents, is having a clear, straightforward plan of next steps. Others point to understanding how much their family could lose to tax (38%) or having a conversation with a trusted professional (37%).

In other words, people don’t necessarily need more information. They need clarity, guidance and confidence.

The findings point to a clear opportunity. Most people recognise the importance of passing on wealth and have already taken some initial steps. But many plans remain incomplete, and key risks, particularly around tax and complexity, are not always fully addressed.

This is where a more joined-up approach could make a meaningful difference. By bringing together different elements such as wills, pensions, investments and gifting strategies, it’s possible to create a clearer picture of what you have, what you want to achieve, and how best to get there.

Just as importantly, a well-structured plan may provide reassurance. It could help ensure that your wishes are understood, your family is supported, and your wealth is passed on as efficiently as possible.

If there’s one message that stands out, it’s that passing on wealth shouldn’t be left to chance or to later.

Starting the conversation, whether with family or a professional, is often the most important step. From there, small, practical actions can build into a more complete and confident plan over time.

You can book a free, no obligation call with one of our financial advisers today. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.

After all, passing on wealth isn’t just about numbers. It’s about people, priorities and peace of mind for you and for those who matter most.

Source: Passing on wealth research, Lloyds Wealth, May 2026, based on 1,126 respondents.

This article is for information purposes only. It is not intended as financial advice.

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