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Family ties


A little thought, and forward planning, provides a brighter future for your family when you’re still here to enjoy it with them!

by Webmaster, 1st July 2021

A little thought, and forward planning, provides a brighter future for your family when you’re still here to enjoy it with them!

As life expectancy increases, we want to help our families when it matters to them. Sharing wealth, during our lifetime, makes a huge difference to them So if you have grandchildren the question to ask is what do hey need, and when?

The best way to give depends on age. Here are some popular options: 

Junior Individual Savings Account (JISA): If your grandchild is under 18, you might put money into their JISA account. You can donate up to their annual JISA limit - £9,000 for the 2021/22 tax year. They can’t touch it until reaching 18. After that, it’s theirs to use as they choose.

Child’s Bank Account: a convenient and easy place to deposit money for smaller presents, but bear in mind that rates have been poor recently.

Lifetime Individual Savings Account (LISA): If your grandchild is 18 or older, a LISA assists in saving for a first home. If they turned 40 on or before 6 April 2017, they’re not eligible. 

First-time buyers under 60 can use a LISA to buy property. For every £4 saved, the government adds £1. Up to £1,000 every tax year until they turn 50. £4,000 a year is eligible for the 25% bonus, paid monthly, so they benefit from compound growth. This forms part of their ISA limit - £20,000 in tax year 2021/22.

Putting gifts into a trust alleviates concerns over giving money before they reach financial maturity and you maintain some control as a trustee. Gifts to the trust also lower the estate for inheritance tax.

Always bear in mind that giving money to your grandchildren may affect how your estate is taxed, so obtain professional advice before doing so.

The above was provided by Hartey Wealth Management Limited. Registered office: Hilliards Court, Chester Business Park, Chester, CH4 9QP.  Tel: 0808 168 5866. www.harteywm.co.uk Hartey Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority

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