Around a third of parents are unwilling to leave an inheritance to their children or provide them with financial aid, as they are concerned that divorce may mean that money leaves the family.
This is according to research from Investec Investment & Wealth, which found that 14% of parents had little or no confidence that their children’s marriages would last a lifetime.
It is perhaps an understandable concern, with around 42% of marriages failing, according to the Office for National Statistics.
There are, however, steps you can take to ensure that your money ends up in the right hands – irrespective of how successful your child might be at finding a long-lasting partner.
Make use of your gift allowance
The research found that one in six parents are opting to give their loved ones small financial gifts to help with the cost of living, rather than large lump sums.
It’s important to remember that everyone has a £3,000 annual gift allowance, covering financial gifts you can hand over each year, free of inheritance tax. On top of that you can give away up to £250 to any number of people each year.
Skip a generation
According to the research, around 14% of parents are skipping a generation and instead looking to leave assets to their grandchildren.
Put it in trust
The study found that one in seven parents are considering putting the money into a discretionary trust, which could be a useful way to protect the money from a divorce.
With a discretionary trust, it is up to the trustees to determine how and when any potential beneficiaries may be able to access the cash. You can appoint yourself as the trustee, so that you have final say over where the money goes, or you can go for an independent trustee. What’s more, the money within the trust is classed as separate from your estate, so it’s free of Inheritance Tax.
It’s important to consider exactly how you want your assets to be divided up among your loved ones, and get those wishes down in the form of a comprehensive will.
To talk to a professional will writer, contact us today by calling 0800 019 4557 or email: email@example.com
You Might also be interested in:
Make A Free, No Obligation Enquiry Now
To speak with one of our specialist Wills & Probate Lawyers, please call us now on 0117 952 0698 or Make A Free Will Enquiry and we will discuss your current circumstances with you and explain all available options available to you.