Property Wealth and the Rise of the Living Inheritance: Why More Grandparents Are Choosing to Give While They’re Living

For many homeowners, leaving an inheritance has long been viewed as something that happens after they’re gone. But that mindset is changing.

Increasingly, older homeowners are choosing to pass on wealth while they can see the impact it has on their loved ones – a trend often referred to as the “living inheritance.” Rather than waiting until later in life, many are using the wealth tied up in their homes to support children and grandchildren when they need it most.

Supporting Family When It Matters Most

From helping children onto the property ladder to contributing towards university costs or providing financial assistance during periods of economic uncertainty, homeowners are recognising that a gift today can make a far greater difference than an inheritance tomorrow.

For many families, this isn’t simply about money – it’s about creating opportunities, reducing financial stress and giving the next generation a stronger foundation for the future.

The Growing Financial Commitment of Grandparents

Research from Legal & General Home Finance highlights just how significant this trend has become. It found that 79% of grandparents are providing financial support for their grandchildren, demonstrating the growing role older generations are playing in family finances.

In addition, one in 12 grandparents have used the wealth in their property to support their grandchildren, showing that housing wealth is becoming an increasingly valuable resource for families looking to provide meaningful financial assistance.

However, this generosity comes at a cost. According to Skipton’s 2026 research, grandparents planning to gift £250 a month to their grandchildren throughout retirement will need an additional £58,000 in their pension savings to maintain their retirement lifestyle. Those intending to gift £500 a month will require an extra £116,000.

These figures illustrate the financial balancing act many retirees face. While supporting younger generations is often a priority, it’s equally important that doing so doesn’t compromise their own long-term financial security.

Property Wealth as Part of the Solution

As property values have increased over the years, many homeowners have built up significant equity in their homes. For some, this property wealth can provide a way to support loved ones without relying solely on pension income or investment savings.

When considered as part of a broader financial plan, accessing housing wealth may enable clients to make gifts during their lifetime while helping to preserve other retirement assets. Of course, any decision should be made carefully and with professional advice, taking into account individual circumstances and long-term objectives.

An Opportunity for Meaningful Financial Planning

The rise of the living inheritance presents an important opportunity for financial advisers.

Conversations about later-life lending and equity release are increasingly extending beyond retirement income and lifestyle planning. They now often include discussions around intergenerational wealth, legacy planning and helping clients achieve their family aspirations during their lifetime.

By understanding a client’s wider family objectives, advisers can support conversations that balance immediate financial support with long-term retirement security, ensuring any decisions remain aligned with their overall financial plans.

Looking Beyond Retirement

Today’s retirees are redefining what their wealth is for. Rather than viewing their home solely as an asset to pass on, many see it as a resource that can help transform the lives of the people they care about today.

The growing popularity of the living inheritance, coupled with the increasing financial commitment many grandparents are making, highlights the importance of looking at every available asset when planning for retirement. Property wealth can play an important role in helping clients achieve their family goals while maintaining financial resilience.

For advisers, recognising this shift can lead to richer client conversations and more holistic financial planning. Helping clients explore how property wealth fits alongside pensions, savings and investments will become an increasingly valuable part of later-life advice as more families seek to support future generations when it matters most.

At Key Partnerships, we work alongside advisers to provide expert guidance on equity release and later-life lending, helping ensure clients receive tailored recommendations that reflect their individual circumstances, family goals and long-term financial wellbeing.