When you want to transfer wealth to your children, there is no one size fits all. There are a number of routes that you can take, one choice is that you simply gift that money to them. There are some complexities around this however, for example, it stays within your estate for seven years and you have to survive those seven years for it to be beneficial from an inheritance tax perspective.
There needs to be thought about whether they are adult enough to receive and look after that money and be a custodian of it, or are they going to spend their inherited wealth on things you wouldn’t want them to?
There could be other complications with family members, their relationships and circumstances such as divorce that could see some of that wealth go elsewhere, so it’s not suitable for everyone but gifting is a simple path for wealth transfer.
There are other ways you can look to do it with things like trusts, you can set up a trust and retain control of those assets to pass on as and when you want to.
If you would like to discuss more about wealth transfer, please get in touch.
