This so-called ‘Sandwich generation’ refers to many people in their 40s, 50s and 60s who are balancing the increasingly difficult circumstances of having to support both their adult children and elderly parents, all whilst planning for and making provision for their own future and personal circumstances.

One of the most common pressures facing this generation is the desire to help adult children and their respective families establish themselves financially whether through house deposits, education costs or regular assistance with day-to-day expenses. However, this can introduce the potential for conflicts to arise as in many cases, these transfers take place informally. What one family member considers a gift may later be viewed by another as an early inheritance or even a loan. Without clear records and communication, misunderstandings can arise and family relationships can suffer.

Furthermore, many individuals are taking on increasing responsibilities for elderly parents in an ever-aging population. As life expectancy continues to rise, more families are dealing with issues such as declining health, loss of capacity and the practical realities of long-term care. Children often find themselves helping with financial decision-making, organising care arrangements or managing day-to-day affairs.

 

The recent Inheritance Tax debate

The challenges facing the sandwich generation have become even more relevant in light of recent public debate around inheritance and the funding of social care. In recent weeks, Prime Minister Andy Burnham has reignited discussion about how the UK should pay for long-term care, with media reports focusing on proposals that have been described as a potential “death tax” on estates.

Whatever form future reforms may take, we can be sure that planning exists within a changing legal and political landscape. Inheritance tax, care funding and intergenerational wealth transfer remain prominent policy issues. Families supporting both older and younger generations should take time to consider whether their existing arrangements remain appropriate and how assets might be treated in the future.

 

Planning is key

This is where succession and incapacity planning become particularly important. Whilst many people view a will as the cornerstone of estate planning, the ability to manage affairs during lifetime is often equally significant. If a parent loses capacity without appropriate arrangements in place, family members may face additional challenges and delays when attempting to assist with financial and legal matters.

Family dynamics can also become more complex when one child provides significant care for an elderly parent, while another receives greater financial support. In blended families, or where there are substantial differences in the financial circumstances of siblings, or perhaps when one sibling is involved in the family business and others not, questions of fairness can arise. Fair treatment does not always mean equality, but expectations should be managed carefully. Open conversations can help avoid disputes and preserve family relationships.

Questions worth considering include:

• Is my will up to date?
• Are my parents’ affairs properly organised?
• Have significant gifts or loans been recorded?
• Are there clear plans in place if a family member loses capacity?
• Have expectations within the family been discussed openly?

Increasingly, estate planning is about managing family responsibilities during life and ensuring that support provided today does not create uncertainty tomorrow. Thoughtful planning can help families understand where they stand, avoid misunderstandings and ensure that assets are dealt with in the way intended.

 

Why it matters

The sandwich generation faces a unique combination of financial, legal and emotional pressures. Taking time to review family arrangements, succession plans and incapacity planning can help families navigate these challenges with greater confidence and minimise the risk of future disputes.

 

For legal guidance and advice regarding Will’s or estate planning, please contact Fiona Kirkpatrick or Anna Thompson in our Private Wealth and Estates Team for more information.

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.