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Passing on wealth isn’t just something to think about after you’re gone—more and more families are choosing to give while they live.

What is a Living Legacy?

A Living Legacy means gifting assets, money, or support to your loved ones during your lifetime rather than leaving everything in a will.

This approach allows you to:

• See the impact of your gifts
• Support children or grandchildren when they need it most
• Potentially reduce your Inheritance Tax liability

 Did you know?

75% of 40-year-olds have already received some form of inheritance—often used for property deposits, business ventures, or investments.

 The Tax Angle: A Smart Strategy

One of the biggest motivations behind Living Legacies? Tax efficiency.

Quick Tax Facts:

• Annual Gift Allowance: £3,000 per year is exempt from Inheritance Tax (IHT).
• Wedding Gifts: Up to £5,000 for a child, £2,500 for a grandchild.
• Small Gifts: Unlimited £250 gifts (per person) per tax year.

More importantly, there’s the Seven-Year Rule:

Substantial gifts become IHT-exempt if you live for seven years after making them.

Why this matters:
With IHT thresholds frozen until at least 2030, more estates are becoming liable for tax. Giving earlier could mean more of your wealth reaches your family—not the taxman.

 Helping When It Matters Most

Let’s face it—your children might appreciate help with a house deposit or growing a family more in their 30s or 40s than in their 50s or 60s.

💬 Real-world stats:

• 36% of first-time UK buyers rely on family gifts to get on the property ladder (ONS).
• 59% of 18–35-year-olds are considering delaying having children due to financial worries (Euronews).

Creating a Living Legacy lets you provide that support now, when it has the greatest impact. Better yet—you’ll get to be part of the milestones you helped make possible.

 It’s Not Just About Money—It’s About Guidance

Gifting during your lifetime also means you can guide your loved ones.

• Explain mortgages or help manage debt
• Encourage smart saving or investing habits
• Start pension contributions early

Here’s a striking example:
Pension Power

A parent contributing to a child’s pension at age 22 could help them retire with £175,500, compared to £117,000 if they inherit that same sum at 40.

Things to Consider Before Gifting

Living Legacies can be deeply rewarding, but they do come with important caveats:

Ask yourself:

• Do I have enough for my own retirement and potential care needs?
• Can I give fairly, especially if my children have different financial situations?
• Am I keeping clear records for my executor and HMRC?

 Tip: Work with a financial adviser to calculate what you can afford to give without compromising your lifestyle or peace of mind.

 Why This Might Be the Legacy That Matters Most

Passing on wealth while you’re still here allows you to:

• Reduce potential inheritance tax
• Help your children when they really need it
•  Share your wisdom alongside your wealth
• Witness the joy and stability your support brings

Want to Learn More?

At Clarus Wealth, we specialise in helping families make thoughtful, tax-efficient gifting decisions.

Call us on 01483 600995
Or email hello@claruswealth.co.uk

“The best legacy might be one you can share in today.”