Outright gifts are always possible, but where the plan is to put funds aside for grandchildren - perhaps to fund school or university education - it may be better to consider transferring funds to a trust.
As with outright gifts, a transfer to trust is effective for Inheritance Tax so long as the person making the gift survives for 7 years. However, the funds can be invested for the future and protected until the beneficiaries are older and more financially mature. A well drafted trust will be sufficiently flexible to allow for the differing requirements of each beneficiary to be met, thus ensuring that they are all treated fairly, if not necessarily equally. A trust may not be appropriate for relatively modest sums, but it is certainly an excellent way of passing assets down the generations in a controlled and tax efficient manner.
Do you have any questions about Trusts? Feel free to contact us on the details below.