Expert urges building nest-egg
25/01/2007
Grandparents should consider investing money now to provide a nest-egg for their grandchildren in the future, advises a savings provider.
Older people could start putting money in savings accounts for their family and avoid leaving them facing a large inheritance tax bill, according to The Children's Mutual.
The savings group claims that regular annual payments of £3,000 in a long-term investment scheme could see grandchildren receive a lump sum of more than £78,000 when they turn 18.
"For many grandparents it is important to retain a level of control over the money they have put by and increasingly they need to consider the implications of inheritance tax," suggests the savings provider's chief executive, David White.
The expert adds that people looking to avoid a large tax bill should consider ring-fenced investments for a grandchild, which could help "to provide that child with a financial springboard into adult life".
Mr White was speaking in the wake of a recent report from Scottish Widows which found that more than four in ten (41 per cent) UK households are liable for inheritance tax at 40 per cent.
The study also claimed that 43 per cent of those liable are planning to avoid a large tax bill by giving away regular or one-off cash sums to family and friends.
Older people could start putting money in savings accounts for their family and avoid leaving them facing a large inheritance tax bill, according to The Children's Mutual.
The savings group claims that regular annual payments of £3,000 in a long-term investment scheme could see grandchildren receive a lump sum of more than £78,000 when they turn 18.
"For many grandparents it is important to retain a level of control over the money they have put by and increasingly they need to consider the implications of inheritance tax," suggests the savings provider's chief executive, David White.
The expert adds that people looking to avoid a large tax bill should consider ring-fenced investments for a grandchild, which could help "to provide that child with a financial springboard into adult life".
Mr White was speaking in the wake of a recent report from Scottish Widows which found that more than four in ten (41 per cent) UK households are liable for inheritance tax at 40 per cent.
The study also claimed that 43 per cent of those liable are planning to avoid a large tax bill by giving away regular or one-off cash sums to family and friends.
