The Shift I’m Seeing
A pattern I’m seeing among families with wealth is this: parents and grandparents are increasingly choosing to gift earlier, rather than waiting for their will to do the work after they are gone.
Clients are no longer just asking how to pass wealth on, but when. It’s not purely technical anymore. It’s emotional, layered, and intentional.
We’re living through the Great Wealth Transfer – wealth built by Baby Boomers is moving to the next generations. Recent tax changes are playing a role, but what stands out is a growing desire to see money make a difference now, ‘while you’re here to witness it’.
Of course, you have concerns: how money will be used, who your children may partner with, divorce, business risk, illness – and ultimately, whether you might need the money yourself after all. Care costs weigh heavily, especially if you’ve seen estates in your own family eroded by them.
And yet, alongside that caution, there’s a clear shift: you want to see surplus wealth making a difference today. As many people say, “I’d rather see it helping now than sitting in the bank.”
Why Timing Matters
A £100,000 gift at 30 is rarely just £100,000.
For your children or grandchildren, it could mean buying a home sooner, easing mortgage pressure, reducing working hours, or turning an idea into a business.
Money is most powerful when it removes pressure.
When wealth arrives later in life, it’s still appreciated – but it tends to reinforce an already established position rather than create it.
There’s also a deeper, personal element: the difference between seeing the impact of your wealth and simply knowing it will be distributed after you’re gone. Increasingly, I see a shift -from preserving wealth to participating with it.
What Might Be Holding You Back
As Roy Jenkins once said:
“Inheritance Tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue.”
I am not sure I believe this. In my experience, hesitation is rarely about a lack of trust. More often, it’s about uncertainty.
Planning Properly
Gifting should never feel like guesswork.
Yes, tax rules matter: the seven-year rule, exemptions, taper relief, gifting from income. Trust structures can also help if you want more control or protection. With careful planning – using gifting strategies, exemptions, and allowances – you can reduce a 40% tax exposure significantly.
But this isn’t about encouraging you to give money away lightly. It’s about helping you understand the risks first.
The key to this is cashflow planning – understanding what you’ll need versus what is genuinely surplus. We model your future in detail: longevity, care costs, inflation, market downturns. The aim isn’t reckless generosity – it’s confident generosity.
When you have that clarity, something powerful happens. You move from uncertainty to confidence.
A Shift in Mindset
The most important reassurance you can have is simple; “You have a proper plan and you’re going to be absolutely fine.” Gifting should be a conscious decision, not an emotional gamble.
The principle is simple: your security comes first, generosity second.
You should never compromise your own future. But when planning is done properly, wealth transfer becomes less about tax and more about the difference it can make.
You may also find conversations becoming more open across generations – greater financial awareness, more shared responsibility, and a clearer sense of purpose around wealth.
Because ultimately, this isn’t just about tax. It’s about using your capital where it will have the greatest impact – and seeing the results during your lifetime.
If you’re wondering how much you can afford to gift – or whether you can at all – that starts with clarity.
If you’d rather see your wealth working during your lifetime than waiting for your will to be read, we can help you plan that properly.
At Herbert Scott, we help you gift with confidence.
https://herbertscott.co.uk/contact/ – we’re always happy to talk.
Risk Warnings
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.