A new survey suggests that many middle-aged adults would rather receive part of their inheritance while their parents or grandparents are still alive instead of waiting until after they pass away.
The research, conducted among more than 2,100 subscribers of an independent financial advice firm's newsletter, found that four out of five people aged over 45 would prefer an "early inheritance." The most common reason is to help younger family members buy a home in an increasingly expensive property market.
According to the findings, nearly half of those who have already given financial gifts said the money was used to help children or grandchildren get onto the property ladder. In addition, 88% of respondents said they would consider providing financial support for a home purchase, while 97% agreed that buying a property without family assistance has become extremely difficult for younger generations.
Financial experts note that gifting money during a person's lifetime can also have tax advantages. In the UK, gifts may fall outside inheritance tax rules if the person making the gift survives for seven years after transferring the money. Recent changes to inheritance tax rules have also encouraged some families to review how and when they pass on wealth.
Experts stress that every family's financial situation is different. Before making significant gifts or transferring assets, families are encouraged to seek professional financial and legal advice to understand the tax implications and ensure long-term financial security for everyone involved.