Inheritances wane as parents give money during lifetime Nigel Waterson, chairman of the Equity Release Council, a trade body for personal finance firms, said: "For many of us, it is important that we leave something behind for our loved ones, but with the cost of living soaring and our savings dwindling rapidly, this is becoming increasingly difficult. An increasing number of people are moving away from the idea of a traditional inheritance, instead of giving money to younger family members to help them pay for university or get their foot on the property ladder. A spokesman for the trade body added that the ONS figures, based on legacies left between 2008 and 2010, showed that inheritance pots would be reduced by lifetime spending. "It is implied that the inheritance they were planning to leave will be compromised as they are choosing to dip into their savings and give money to younger family members while they are still alive," the spokesman said. A survey published earlier this year by Aviva, the insurance firm, found that a quarter of over-75s had given a cash loan to family members instead of leaving an inheritance. Nearly one in 10 over-55s regularly give money to family to avoid inheritance tax, while a further 20 per cent would do the same, according to the research. Clive Bolton, managing director of Aviva's At Retirement business, said the "financial realities" for younger people were changing. A second survey published earlier this month by the International Longevity Centre-UK (ILC) think tank found that more grandparents were helping their grandchildren to fund university fees. According to the survey of 2,072 parents and grandparents, just under three per cent of grandparents have helped with fees. That figure will rise by nearly 10 per cent over the next decade, the ILC predicted. Almost 73 per cent of those helping grandchildren expected to do so from savings, while nine per cent expected to draw on investments. The ONS research found that only a "small few" are inheriting most of the wealth passed down the generations. Three quarters of assets recently left in wills has gone to one fifth of people in Britain who received an inheritance, according to the report.