The Rising Popularity of The Bank of Mum & Dad!

In June 7, 2016
Comments off
638 Views

bank of mum and dad

It has been reported that two-thirds of first-time buyers would be unable to afford a home without help. Typically, they buy at aged 30 and put down a 17% deposit (on average £26,000). So, depending on how many children you have, that could amount to an awful lot of money being passed down to your children in the form of property.houseWhilst gifting to your children during your lifetime can be an excellent way to reduce your Inheritance Tax liability (provided you live for seven years after the gift), it would be reckless to do so without exploring the protection that could be put in place for your money.

A Beneficiary Protection Trust is one of the most efficient ways of protecting assets passed to your children, either during your lifetime or on your death. Although you still have to abide by the seven-year rule for gifting, it provides invaluable protection against such things as divorce, bankruptcy or any other claims on your children’s estate.

Whilst you may not see such things as divorce or bankruptcy – or indeed any claim against your children – on the horizon, it does not mean that these events may not occur in the future. By putting such protection in place now, you, as well as your children, are saved any future battles with ex-partners or banks over the gifts you may make to help with first-time house purchases. In the eyes of the law, once money has been given as an outright gift to your children, you have no further claim to it and so it could easily be lost in a number of future circumstances.

If you would like further information about Beneficiary Protection Trusts, please call the office on 01489 877547 or email info@redwoodfinancial.co.uk and we will be more than happy to help.

 

Disclaimer

Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. Past performance is not a guide to future performance. Tax rules can change at any time.

 Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage.  We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

 The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

 The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

Jasmine has been a qualified Financial Planner since 2008. She has also been a member of the Society of Will Writers since 2012. She is passionate about helping Clients build their wealth and achieve the financial lifestyle they desire. Her areas of expertise are that of Savings, Investments, Pensions and Retirement Planning.

Comments are closed.

Statement

Redwood Financial Family Wealth & Estate Planners Ltd is Directly Authorised and regulated by the Financial Conduct Authority. FRN number 774469.

Disclaimers

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

Contact us

Telephone: 01489 877547
Email: info@redwoodfinancial.co.uk

Company information

Redwood Financial Family Wealth and Estate Planners Ltd Company Number: 08926661
Registered Office Address: Wellesley House, 204 London Road, Waterlooville, Hampshire,