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
The research press release and detail can be read by clicking here
Additionally, here are a couple of links that cover the research headlines in more detail;
Daily Express http://www.express.co.uk/finance/personalfinance/816900/Taxman-family-risk-of-tax-bill-with-complex-rules
FT https://www.ft.com/content/ba24b034-502b-11e7-a1f2-db19572361bb
Our free advice page with IHT rates can be read by clicking here
