A pair of studies have revealed that 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.
It would seem 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 as well as discussing those plans with an expert in Trusts and Estate Planning to ensure that those gifts will not inadvertently attract an unexpected tax implication upon death.
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.
Reiss Matthews, Wills, Tax and Probate Partner comments ‘Inheritance Tax planning can be complicated and there is a fine balance between ensuring you have sufficient assets to cover you for life and minimising the potential Inheritance Tax liability that could be payable in the event of your death. Although the sums passed onto family members will no doubt be gratefully received not discussing such matters could result in families paying more Inheritance Tax than they need to. I would urge anyone who is considering making gifts or is concerned about the Inheritance Tax that may be due on their death to seek independent, professional advice as soon as possible. There are things you can do to reduce the burden of this Tax on love ones.”
The expert lawyers in the Wills, Tax and Probate team at Enoch Evans LLP are based across two offices in Walsall and Sutton Coldfield. The team are experts in providing bespoke Estate planning advice and regularly advise how best to plan for and reduce the Inheritance Tax that will be due on death. The Department is accredited by the Law Society as members of its elite Wills and Inheritance Quality Scheme (“WIQS”).
If you wish to this further please do email Richard Neea (firstname.lastname@example.org) or Reiss Matthews (email@example.com) or alternatively telephone 0121 725 2290. We will be happy to meet with you in person at one of the firm’s offices or alternatively if you prefer we would be pleased to speak with you virtually using your preferred video conferencing platform.