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Grandparents set to increase gifting following pandemic and families set to inherit more than expected
03 December 2020

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.

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.

Link: Inheritance tax: Grandparents to pass on more money to their families in the wake of Covid-19

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