{"id":23180,"date":"2026-01-12T10:15:45","date_gmt":"2026-01-12T10:15:45","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/when-is-the-best-time-to-pass-on-wealth\/"},"modified":"2026-05-26T18:15:17","modified_gmt":"2026-05-26T18:15:17","slug":"when-is-the-best-time-to-pass-on-wealth","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/when-is-the-best-time-to-pass-on-wealth","title":{"rendered":"Tips for passing on wealth to children"},"content":{"rendered":"\n

Traditionally, people wait to pass on their wealth to their children and grandchildren when they die. But there are several reasons why passing on assets during your lifetime could be worth considering.<\/p>\n\n\n\n

While the approach that\u2019s right for you will depend on your individual circumstances, making lifetime gifts<\/a> could not only prove tax efficient, but also make a bigger difference to your family\u2019s financial wellbeing<\/a>.<\/p>\n\n\n\n

Here, we look at what to consider when deciding when to pass on wealth to your loved ones.<\/p>\n\n\n\n\n\n\n\n\n
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Download: A guide to inheritance tax planning<\/h5>\n

Everything you need to know about leaving a tax-efficient legacy for your loved ones.<\/p>\n

Download now<\/a><\/strong><\/p>\n

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Here, we look at what to consider when deciding when to pass on wealth to your loved ones.<\/p>\n\n\n\n

What\u2019s your estate\u2019s inheritance tax (IHT) liability?<\/h2>\n\n\n\n

Leaving assets to children and grandchildren via a will is very common, but it can actually be one of the least tax-efficient ways to pass on wealth. When you pass away, your estate will be valued for IHT<\/a> purposes.<\/p>\n\n\n\n

For a single person, assuming no gifts above annual allowances in the past seven years and full IHT allowance is available, the estate will be assessed for IHT upon death. Any proportion exceeding \u00a3325,000 (the IHT nil-rate band) will be taxed at 40%.<\/p>\n\n\n\n

If you pass on your main residence (or the sale proceeds of it) directly to your children or grandchildren (direct descendants) when you pass away, you might qualify for the additional residence nil-rate band. This allowance is currently up to \u00a3175,000 per person and dependent upon the property value. It is also gradually reduced if your estate exceeds \u00a32m.<\/p>\n\n\n\n

Overall, an individual could potentially pass on a maximum of \u00a3500,000 before IHT kicks in<\/a>. It\u2019s possible to transfer any unused element of your IHT allowances to your living spouse when you pass away, which effectively doubles the limit to a maximum of \u00a31m.<\/p>\n\n\n\n

Could lifetime gifts be more beneficial?<\/h2>\n\n\n\n

Another way of passing on wealth is to gift money while you\u2019re still alive. As well as being tax efficient, passing on wealth through lifetime gifts could be more beneficial for your children and\/or grandchildren<\/a>.<\/p>\n\n\n\n

Rising life expectancy means that those who receive an inheritance via a will could be well into their 60s<\/a>, by which point they may not need as much financial support. For a young adult, however, a financial gift could make a huge difference \u2013 perhaps enabling them to graduate from university debt-free or put down a deposit on their first home<\/a>.<\/p>\n\n\n\n

Having an open conversation<\/a> with your family about their needs and expectations could be a good place to start.<\/p>\n\n\n\n

Can you make use of trusts?<\/h2>\n\n\n\n

Trusts can be a helpful way to manage your IHT liability. If you put assets into a trust, they become the property of the trustees and no longer belong to you personally. That means that, where the relevant strict conditions are met, the assets generally won\u2019t be included in your estate when it comes to calculating IHT. However, trust planning is complex, so it\u2019s crucial to get professional advice. <\/p>\n\n\n\n

Trusts can also be useful if you want to maintain control over how the assets are used.<\/p>\n\n\n\n

Are you making the most of gifting allowances?<\/h2>\n\n\n\n

Another benefit of giving away money during your lifetime is that it reduces the size of your estate, which in turn can help to reduce your estate\u2019s IHT liability<\/a>.<\/p>\n\n\n\n

There are a range of allowances that can enable you to gift money tax efficiently. These allowances aren\u2019t straightforward, so it\u2019s important to speak to a wealth manager before getting started. Gifting allowances include:<\/p>\n\n\n\n