The younger generation are increasingly being forced to rely on parents and grandparents to help them get on the property ladder.
But the Bank of Mum and Dad (or Grandma and Grandad) doesn’t just help loved ones – giving money as an early inheritance can be incredibly tax-efficient. It reduces the size of an estate, reducing a future inheritance tax bill.
Callum Watts and his brother Ollie are two people who have benefited from being “gran-rolled”. The twins say they would never have been able to buy their two-bedroom flat in North London without an early inheritance from their grandparents.
Both 26, the siblings had saved hard for years and had built up about £60,000 between them in Lifetime ISAs. But it still wasn’t enough to get them a foot on the property ladder.
A five-figure gift from their grandparents changed everything. The brothers were able to buy their £450,000 flat and even had some money left over for renovations.
