Residents expect inheritance – but will it be enough?

By Eudore R. Chand

DUBAI 18 February 2019: More people in the UAE expect an inheritance, but the amount they receive may not help them achieve their aspirations, according to a new research

Most people want to use their inheritance to buy a house (36%) or start a business (32%). The average expected inheritance stands at Dh1,047,436 — but people now expect around Dh30,400 less in inheritance than last year, said Quilter International and Quilter Cheviot.

At the end of 2019, 60% of respondents believed they will receive an inheritance, representing a 5% increase compared to when they were asked the same question in 2018.

The most popular use for an inheritance is to buy a house (36%) followed by starting their own business (32%) or using it for other investments (32%). Nearly one quarter (23%) plan to invest their inheritance for the future or save it for retirement. A further 12% will leave their inheritance in cash and 6% plan to spend it all.

However, according to Property Monitor’s 2020 February Dubai House Price Index, the average house price in the city is over Dh3 million, far more than the average anticipated inheritance.

The average expected inheritance now stands at Dh1,047,436, which has dropped by Dh30,381 since 2018.

Quilter International has rebranded from Old Mutual International. The change in name is a result of Quilter plc separating from Old Mutual plc in June 2018 and listing separately on the London and Johannesburg stock exchanges.

Paul Evans, head of region, Middle East & Africa, Quilter International, said: “An inheritance can represent the most money someone will ever receive in their life. However, people often depend on it to deliver their financial aspirations such as buying a property or starting a business. These are expensive objectives and money from an inheritance will need to be carefully managed if it is to help them achieve these ambitions.”

Dubai Gazette