Grandparents could make substantial savings from moving the money they have invested and saved all their lives into a different type of account, a financial expert has said.
Inheritance tax (IHT) can take substantial amounts of money off relatives who have been given capital in a will by a deceased relative.
Estate planning specialist for Standard Life Assurance Julie Hutchison comments that many grandparents are unable to pass on their investments while they are still living.
"It is not always possible for grandparents to pass on capital during their lifetimes as they rely on the income generated from their investments to maintain a reasonable standard of living," she remarks.
Ms Hutchison advises that grandparents could benefit by moving their savings into a Discounted Gift Plans, were savings could be made from inheritance tax to the advantage of their relatives.
However, the full savings from inheritance tax would only be made after the person has survived the gift by seven years.
Recently, research by Engage Mutual found the parents of low-income families save more of their income into Child Trust Funds than high-earning parents.
Grandparents could avoid IHT, says expert
Grandparents could avoid IHT, says expert
Tue, 11 Sep 2007
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