Your knowledge and wisdom isn’t the only thing you can pass onto your grandchildren.
The final amount of Inheritance tax that your Estate eventually becomes liable to, is very much down to your planning or lack of it. Whilst there are various thresholds, where no tax is currently payable, referred to as the Nil Rate Band and Residential Nil Rate Band, above these limits your Estate will pay tax at 40% of your world assets.
You can make sensible plans to gift money to your children during your lifetime, but will you need access to this money later in your retirement, in which case can you really afford to give it away? This is a conundrum that many of our clients have faced, but there are solutions to address this problem.
With careful planning, there could be a combination of strategies that could mitigate the tax altogether, while allowing you to retain access to your investments, just in case they are needed one day to supplement any potential nursing home fees.