Grandparents are helping their grandchildren financially in myriad and at the same time avoiding inheritance taxes. Their motives vary, but they are mainly interested in seeing their grandchildren enjoy their gifts before they die, rather than leaving them as an inheritance. An average of £ 9,360 is being gifted to grandchildren for a variety of activities, including holidays and driving lessons, but grandparents are also gifting equity to help grandchildren have their own homes, often worth up to an average of £33,000. For grandparents who wish to give, any amount can be given seven years before death without tax attached to it, but up to £3,000 can be given at any time as a gift. If the money is given as a loan, it is recommended that terms are discussed beforehand to avoid future problems.
Key Takeaways:
- Grandparents are gifting larger sums of money to their grandchildren more often.
- One of the reasons they are gifting money to their grandchildren so that they can enjoy seeing their grandchildren use it.
- Doing so also helps grandchildren avoid having to pay inheritance taxes.
“One in three grandparents has now given their grandchildren a financial boost, Saga found.”