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.
The expert lawyers in the Private Client team at DPA Law LLP are based across three offices; Llanelli, Ammanford and Cardiff.
Should you want any assistance please contact Ffion Thomas at Ffion.t@dpalaw.co.uk or alternatively telephone 01554 749144.
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