Help your kids buy a home – and avoid inheritance tax in the process – Tax
UK: Help your kids buy a home – and avoid inheritance tax in the process
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Family members are expected to distribute a record Â£ 9.8bn to their children in 2021, according to forecasts by real estate agency Savills. Mommy and Daddy’s Bank, and its counterpart the âGrandmother and Grandfather’s Bank,â have been heavily cited thanks to sky-high property prices, but generous benefactors need to be aware of the tax traps along the way. .
For generations, the notion of trust has been associated with the super-rich, and their popularity has declined in recent years. However, they can be a convenient way to manage inheritance rights for parents or grandparents in the hope of securing an estate for the future of a loved one.
Putting money in a trust, as opposed to just a donation, also protects against the risk of funds being wasted by young beneficiaries or lost due to failed relationships.
Russell-Cooke partner Clare Jeffries comments in The Telegraph outlining the various benefits of trusts in terms of estate tax planning, avoiding tax traps and maintaining control over funds.
Help your kids buy a home – and avoid inheritance tax in the process is available for reading on the Telegraph’s website via subscription.
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