An ageing Baby Boomer generation is expected to pass on a staggering £5.5 trillion1 to younger generations over the next 30 years in what has been called ‘the great wealth transfer.’ Have you considered how you would like your heirs to benefit from your legacy, or whether you could afford to gift some wealth during your lifetime?

Considering lifetime gifting

Research, collected by YouGov2 , has found that just under half (48%) of Baby Boomers say they could afford to give money to family members before they die, less than a third (29%) ruled it out as an option they would consider, with the remainder unsure.

Of those who said they could afford to make lifetime gifts, 40% preferred the idea of making multiple small gifts, with a third (33%) favouring larger one-off wealth transfers.

Getting the right balance

For a growing number of households, the receipt of an inheritance or a financial gift from older generations could prove to be a financial lifeline. However, although you may want to give a helping hand to children or grandchildren who may be struggling financially, you also need to consider your own financial wellbeing in your retirement years, particularly with the prospect of a long retirement and possible long-term care costs. It can be difficult to strike the right balance without getting professional advice to understand all your options.

Time to break free from the taboo

Frank family conversations about financial matters are important for the wealth transfer process to be successful but we understand that discussing money issues with your children can be difficult and may make you feel uncomfortable.

Involving your family

When considering if and how you may want to transfer your wealth, whether through inheritance or gifting during your lifetime, we encourage the involvement of family members in your financial planning discussions and we are happy to help you start and direct those conversations so everyone’s needs are fulfilled. 1 Kings Court Trust, 2018, 2 Quilter/YouGov, 2020

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Tax and Estate planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

Will writing is not regulated by the Financial Conduct Authority. 

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