What are the tax implications of passing assets on to family?
A reader of the Financial Times is considering passing on their assets, which includes a large property portfolio, to their two grandchildren who are over 18 years old, but asks which tax considerations they should be aware of.
Owen Byrne, senior associate in BDB Pitmans’ private wealth team, notes that practical considerations govern tax considerations, and that a common concern is whether children in these instances are at the risk of having too much too soon. Owen explains in the article the practicalities of estate planning, the implications of using a trust and the important discussions the grandparent should have with their financial advisers, parents of the grandchildren and a lawyer in order to avoid internal family strife in the future.
The full article is available to subscribers of the Financial Times, here.