The Bank of Mum and Dad is still a popular source of help for financial assistance, however 24% of over-55s are not planning to pass on any wealth in their lifetime over fears they could face crippling care costs in old age. An estimated £4.8 million of parents and grandparents wealth will be retained until after death because of the future cost of care. Currently financial gifts of unlimited sums – known as ‘potentially exempt transfers’ – which are free of Inheritance Tax if the individual making the gift survives by seven years. However more and more people are being cautious with gifting because they think they will need to access these funds to maintain their health.
