Grandparents set to increase gifting following pandemic and families set to inherit more than expected

Two studies have revealed that many UK grandparents are reconsidering their plans following the Coronavirus pandemic, which may mean that many families are set to inherit more than they expected to.

A survey of 2,006 grandparents, carried out by an investment firm, found one in seven are reassessing how they will pass on their assets to their families. 40 per cent said they planned to increase gifting as a consequence of the pandemic.

The report suggests that grandparents feel more pressure to help their grandchildren since the outbreak of COVID-19. However, experts recommend balancing gifting against a person’s retirement plans.

Meanwhile, a separate study by a wealth management firm, found that many UK adults are set to inherit much more than they expect.

The study found parents expect to leave 60 per cent more than their children expect to receive. On average, they expect to leave £124,000, while baby boomers expect to leave £174,000 and over-75s will leave £275,000.

Families should carefully consider the Inheritance Tax implications of making gifts and leaving more wealth to the next generations to reduce any potential liabilities.

Here at Moore Thompson, we understand the desire to help loved ones both now and in the future. We can provide expert advice on tax efficient gifting and also estate planning to ensure that your legacy is passed on in the most tax-efficient manner.

There are many ways to mitigate your IHT liability and there are exemptions and reliefs which can be used to mitigate the tax,

For help and advice with matters relating to Inheritance Tax, please get in touch with our expert team.