The Bank of Mum and Dad is more in demand than ever before, helping the younger generation join the property ladder, pay for university tuition fees, purchase a vehicle or contribute to other costs.
However, new research shows that almost half of parents and grandparents fear incurring a hefty inheritance tax bill because they fail to understand the increasingly complex rules.
Key Retirement, an equity release provider, who undertook the research reported the headlines as:
- 47% of parents and grandparents said they did not understand the tax rules around gifting
- Almost three quarters (73%) admit they find the rules ‘very complicated’
- 37% would gift a ‘living inheritance’ if tax breaks to boost intergenerational wealth transfers were provided by Government
Additionally, here are a couple of links that cover the research headlines in more detail;
Our free advice page with IHT rates can be read by clicking here