Leaving an Inheritance: The Dilemmas of Bequest Giving Rhian Powell School of Social Sciences Cardiff University This thesis is submitted in the fulfilment of the degree Doctor of Philosophy 2021 Abstract This research is about the dilemmas that people encounter when thinking about what to do with their money after they pass away. Deciding how to distribute an inheritance requires the testator to confront, and prioritise, multiple potentially competing moral, social and political beliefs as they try to decide which members of future generations need and deserve their money most. My research is focused around three of the largest considerations that testators grapple with when making their decisions – the family, charities and inheritance tax – and the different moral and social dilemmas that each of these considerations present. In order to explore these dilemmas, in-depth semi-structured interviews were carried out with twenty-two people living in south Wales. Individual and joint-couple interviews were used to explore the decision-making process that people undertook when making their decisions. My research shows that decisions about how to distribute an inheritance are complex and multifaceted, involving the consideration of multiple different factors. In making these decisions participants asked themselves questions such as, who do they have responsibilities and obligations towards? How much should each beneficiary receive? Are these beneficiaries deserving? Is this the fair thing to do? My research shows that whilst family are an important consideration, there are reasons people believe they also have responsibilities to those outside of the family. Reasons included concerns about leaving ‘too much’ to family, the deservingness of family members and worries about how family members might spend their money. Leaving bequests to charitable organisations or to the State through inheritance tax were not straightforward decisions either and raised their own dilemmas about equality, fairness and social justice. These dilemmas were complex and often paradoxical forcing testators to confront their potentially competing moral, social and political beliefs. My research shows that decisions about how inheritances should be divided are highly context-dependent but are also based on the testator’s i ideas of need, merit, fairness, legacy, social justice and intergenerational justice. My research is an exploratory project which offers an insight into both the ‘public’ and ‘private’ dimensions of the bequest decision-making process. Understanding the dilemmas involved in this process is vital for understanding who receives what money and reflects more general attitudes towards civil society, the family and the State. My research offers insights to charitable organisations who are becoming increasingly dependent on charitable bequests, and also provides a sociological enquiry into attitudes towards inheritance taxation and its associated debates on equality and fairness. ii Acknowledgements Completing this thesis has been a long and challenging, but highly rewarding, experience. Particular people have been central to making this possible and their support and essential contributions deserve acknowledgement. First and foremost, I would like to give my thanks to all my interviewees for their generosity and kindness in welcoming me into their homes, giving me their time and sharing their stories with me, even when it was difficult to do so. I am also thankful for the people and organisations that helped me to find the interviewees and allowed me to sit in on their meetings. I owe a great amount of gratitude to my supervisors Sally Power and Chris Taylor for their invaluable advice, patience, proofreading and feedback. They have been excellent supervisors who have helped to make my PhD experience a very enjoyable one. I would also like to acknowledge the vital roles of Esther Muddiman, Kate Moles and Hannah Blake for helping me get this far. Their conversations and insights have been instrumental in helping me to develop many of my ideas. Thanks also to Esther and Kate for reading and giving feedback on earlier drafts of this thesis. I would like to give thanks to the Economic and Social Research Council, who funded this research project and the Wales Institute of Social and Economic Research who hosted it. Last, but certainly not least, I want to thank Mam, Dad and Ceri. Without their support, encouragement and love none of this would have been possible. This thesis is dedicated to them. Diolch! iii Table of Contents Chapter One Inheritance Dilemmas ...................................................................................... 1 1.1 ‘Freedom’ of disposition: The legal context ...........................................................................3 1.2 Research questions and research scope ..............................................................................8 1.3 Chapter outline...........................................................................................................................9 Chapter Two Literature Review .......................................................................................... 13 2.1 Writing a will ............................................................................................................................ 14 2.2 Family ....................................................................................................................................... 18 2.3 Charities ................................................................................................................................... 22 2.4 Inheritance tax ........................................................................................................................ 25 2.5 Discussion ............................................................................................................................... 28 2.5.1 Taboos around wealth and death .........................................................................28 2.5.2 Altruism and exchange .........................................................................................33 2.5.3 The social meanings of money .............................................................................35 2.5.4 The importance of choice ......................................................................................36 2.6 Concluding points ................................................................................................................... 37 Chapter Three Introducing the Data ................................................................................... 39 3.1 Research design ..................................................................................................................... 40 3.1.1 A qualitative approach ..........................................................................................40 3.1.2 Semi-structured interviews ....................................................................................41 3.1.3 Joint couple interviews ..........................................................................................43 3.1.4 Sampling and participant recruitment ...................................................................46 3.1.5 Supplementary interviews: Solicitors and charitable organisations......................51 3.2 Conducting interviews: practical and ethical considerations ........................................... 52 3.2.1 The research location ...........................................................................................52 3.2.2 The interview sites ................................................................................................55 3.2.3 Consent and anonymity ........................................................................................57 3.2.4 Uncomfortable conversations ...............................................................................58 3.3 Managing the data.................................................................................................................. 62 3.3.1 Recording the data ................................................................................................62 3.3.2 Data coding and analysis ......................................................................................63 3.4 Concluding points ................................................................................................................... 65 Chapter Four Thinking About Legacy ............................................................................... 67 4.1 Decisions and dilemmas ....................................................................................................... 68 4.2 Inheritance and emotion: Leaving ‘stuff’ ............................................................................. 72 4.3 Negotiations with others ........................................................................................................ 76 4.3.1 Couple negotiations ..............................................................................................76 4.3.2 Family negotiations ...............................................................................................84 4.4 Reflecting on process ............................................................................................................ 88 iv Chapter Five The Moral Economy of the Family .............................................................. 90 5.1 Love and family: the social work of inheritance ................................................................