Two recent 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.
Tim Steele, A Partner with Palmers who specialises in Wills and estate administration, said: “Leaving a legacy in a Will is not only an altruistic act but may also be a tax efficient method of managing your finances.
“Gifts to charities are exempt from Inheritance Tax (IHT) so any charitable donations written into your Will are not considered to be part of your estate for IHT purposes.
“Additionally, your estate will benefit from a reduced 36 per cent IHT rate, if you decide to leave 10 per cent of your net estate to charity.”
Tim added: “We are conscious that the current public health crisis is, understandably, leading many people to either make or revise their Wills.
“Traditionally, our approach to the preparation of Wills has been to begin with a face to face meeting with our clients, to explore their personal and financial circumstances and their aims and wishes, and then to offer advice and progress matters from there.
“Although our offices have now fully re-opened, we understand people may wish to keep face to face meetings to a minimum. With this in mind, we have launched our new cloud-based legal service to start the Will writing process.”
The online Will service is available 24/7, from the comfort of your own home. Clients still benefit from the high level of personal service, the Wills team takes pride in delivering.
And the good news is that there’s no need to wait until the next working day to get started.
Our secure, online cloud-based service means you can provide initial instructions to our specialist Wills team right now.