Millennial wealth: As grandparents and parents pass assets down, how can you steer clear of potential tax traps?
At last, some good news for Generation Y. According to a recent Royal London survey, a cascading wall of wealth – around £400bn – is predicted to descend from the property-owning “grandparents’ generation”, as more pensioners plan to restructure their estates to help the younger generations financially. However, with this generosity comes potential tax traps of which both donors and beneficiaries need to be aware.
The survey focused on three main generations – the grandparents’ generation (over 65s), the “sandwich generation” (aged 45-64) and the “children’s generation” (aged 25-44). The wealth gap between the grandparents’ and children’s generation has been well publicised, with the latter set to become the first demographic not to earn more than their parents, while the former are seeing their pension income rise faster than the working generation, and are set to enjoy a comfortable retirement.
To view the full article, first published in City AM on 26 April 2017, please click here.
Wedlake Bell LLP
t: +44 (0)20 7395 3053