In many cases it is also about passing money down well before death. As with all gifts of any size, provided the giver survives seven years, there is no inheritance tax to pay.
The simplest way to help grandchildren is often to help them buy a house by giving them the money for the deposit the property is then in the grandchild’s name, and the mortgage is their responsibility. But despite the benefits of this some 'Pensioners don't trust their children or grandchildren' says Angela Murfitt. “There’s a view among the older generation that it’s a very generous thing to give grandchildren £200 a year, regardless of the fact that there is £1 million sitting in the bank,” said Murfitt, a financial planner with clients are in their seventies and almost all likely to face an inheritance-tax bill. “It can make perfect sense to give money away,” she said. “But it’s a moot point when it comes to writing the cheque. People don’t want to lose control over their own assets.
If the straightforward handing over of cash is not for you there are plenty of other solutions which help bridge the inter-generational wealth gap and Enables IFAs in Bishops Stortford are happy to talk you through your options for helping the next generation.
Source: http://www.telegraph.co.uk/personal-banking/mortgages/the-new-bank-of-mum-and-dad-we-live-in-dads-buy-to-let/
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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