COVID-19 - We are open for business and here to help ->
Call Stirling 01786 235 235
Call Tillicoultry 01259 753 330
1 minute reading time (284 words)

Millions of parents transfer assets to children in bid to reduce inheritance tax

New statistics have revealed that 20% of parents in the UK have gifted assets to their children to mitigate inheritance tax.

Direct Line Life Insurance conducted the research throughout Britain and discovered that £227bn had been given to children from 6.9 million mums and dads. A further 19% of parents said they have not yet passed on some of their assets, but plan to do so in the future.

The value of the assets varies throughout the regions of the UK, with London parents giving the highest average amount of £119,207. London is also the most likely location for parents to transfer assets to their children.

In Scotland, the average amount transferred is £12,495, with 15% of Scottish parents gifting assets to their children to reduce the amount of tax.

The families plan to cut down on their inheritance tax, however, may not be cost-effective, as depending on the amount given, a tax could still be charged. The UK allows a yearly gifting allowance of £3,000, but any amount higher than that could still be charged tax.

Jane Morgan, Business Manager at Direct Line Life Insurance discussed the parents' motives, stating:

“Worrying about what happens to your children when you’re no longer around is natural for any parent and it is understandable that people want to maximise the money they leave behind. However, it is important that people planning to transfer money understand the tax implications that a gift might give rise to.”

Contact watersrule solicitors today

For specialist legal advice on a range of issues, including making a will, executry, powers of attorney, guardianship and intervention orders, and confirmation, speak with one of our professional lawyers today via the online enquiry form


Law Society of Scotland launches consultation on r
Consultation on mixed-sex civil partnership
Please note that watersrule solicitors ARE NOT registered to provide Legal Aid or other types of Legal Financial Assistance.

Get in touch

We always aim to reply within 24 hours

Please let us know your name.
Please let us know your email address.
Please let us know your phone number.
Please let us know your email subject.
Please let us know your message.

“They were very thorough in their preparation, very realistic in their goals, worked to resolve issues and kept me very well informed.”

Michael, Tillicoultry