Senior man reading book with grandkids

How can I leave a legacy for my child or grandchild?

We are often asked how you can best pass on wealth to your children and grandchildren and we work with people to mitigate IHT and to ensure that their wealth is successfully passed down, but you have to have the wealth to pass on first. However, there is an affordable way to make sure you leave a legacy for your children or grandchildren.

How would you like to set up a £1,000,000 (yes, one million pounds) trust fund for your children and grandchildren? Well it is easier than you think.

If you set up a Whole of Life Plan now, monthly payments could leave the legacy you are wanting to for your descendants.

For example:

  • The cost for a male aged 40, non smoker, accepted on standard terms would be £451.66 per month.

That would produce a Whole of Life Fund payable on your death of £1,000,000 and even if you live until you are 90 you would only pay in £270,600.

  • If that is too much to commit to per month, then look at it in multiples of £100,000.

£54.94 per month = £100,000 fund for £23,074.80 in payments

£109.88 per month = £200,000 fund

£164.82 per month = £300,000 fund

Obviously costs will vary based on your age, sex, the terms accepted and the monthly premium but it is definitely an option worth exploring.

The Whole of Life Plan can even be set up as a trust so there will be no liability to IHT either.

If your estate already has an IHT liability, these funds on the other hand could also be used to pay the owed tax, ensuring that you can pass on the full value of your estate to your chosen beneficiaries.

The plan also pays a cash sum early if you are diagnosed with a terminal illness and are expected to live for less than 12 months, helping you to see the benefit that it will bring to your family and allowing you to enjoy the time you have left with them without any worries about money or their financial future. There are some restrictions to the plan and you should fully review and understand all terms and conditions before taking out a Whole of Life Policy. We can help you make sure that you get the right option for you and talk you through all the options is plain English. Just give us a call on 0333 456 0333.

There are also many ways to mitigate IHT and make sure that your children or grandchildren receive the legacy that you intended them to, so speak to us today on 0333 456 0333 about an initial free no-obligation review.

 

Please remember: Inflation will erode the eventual value of a million pounds. This article and the examples featured are for information purposes only and independent financial advice should be sought before taking any action.