Independent Financial Life Planners Bishop's Stortford: How to pass cash on to the kids?

Thursday, 2 July 2015

How to pass cash on to the kids?

As part of a well-managed financial plan many want to make sure they have organised their monies as efficiently as they can for passing on some of their wealth to the family. Enable’s IFAs in Bishop’s Stortford know that the most straightforward way to hand down money is through a cash gift. If you are a parent, a grand parent you can give any size of lump sum as a cash gift to your child free of inheritance tax, provided you live for seven years after making the gift.

If you are in a couple, you can give away £6,000 each year exempt from inheritance tax (£3,000 each). If you haven't made any gifts in the year before, you can still use that year's allowance effectively doubling the amount gifted to £12,000. It is good to remember that you can’t combine this with the £250 annual limit on small gifts for the same person.

If you are wanting to save up to help a child aged under 18 a Junior ISAs will reduce the capital and income tax liability for your child. In the 2015-16 tax year, the savings limit for Junior ISAs per child is £4,080 but at reaching 18 your child can access the money to spend as they wish so they need to be able to use the monies wisely. If your child is older and you are sure they will use the money wisely you could open an adult Isa in your child's name. That way you could pay in each year up to the annual limit of £15,240 for the 2015-16 tax year. Remember a child of 16 can have a cash ISA but they can't have a stocks-and-shares ISA till after their 18the birthday.

Issued by: Enable Independent Financial Life Planners  25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339  Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.