Lilly Whale: Tax planning for grandparents explained

IHT implications

clock • 4 min read

Lilly Whale looks at the options for grandparents looking to financially help their grandchildren in the most tax-efficient way...

With the widening chasm between the older generation living longer and the younger generation finding it harder than ever to fund big life events, it is little wonder that grandparents often skip their Generation X children in favour of passing their wealth to their Generation Y/Z grandchildren. Nowadays Gen-X simply cannot always help with university fees or the deposit for a first home, whereas grandparents often can. Despite the shift in modern-day money habits, the law on gifting - at least from an inheritance tax perspective - has unfortunately remained steadfastly limited. That ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

MPs call out 'perversity' of infected blood scandal inheritance tax charge

MPs call out 'perversity' of infected blood scandal inheritance tax charge

Comes as 12-week consultation launches

Jen Frost
clock 31 October 2025 • 3 min read
The 'stark' impact of tax and pensions changes on special needs families

The 'stark' impact of tax and pensions changes on special needs families

Among hardest hit by ‘poorly consulted’ reforms

Jen Frost
clock 27 October 2025 • 8 min read
Former BoE governor Lord King slams potential 'mansion tax' proposal – report

Former BoE governor Lord King slams potential 'mansion tax' proposal – report

The potential property tax ‘not a coherent tax strategy’

Isabel Baxter
clock 27 October 2025 • 2 min read