For those planning ahead or in need of immediate funds, families are starting to look more at gifting as a tax-effective option to help loved ones.
Three quarters (75 per cent) of respondents have received some money from parents for a life event or to support ongoing costs, while 56 per cent have received money from grandparents.
The number of people who said they’d received no gifts has decreased from 23 per cent to 16 per cent year on year.
Some of the most popular items being gifted from parents include money for a wedding (14 per cent), money for a house deposit (12 per cent), to help with bills (12 per cent) and 11 per cent who say their parents have gifted them money for their savings and investments.
With freezes to the inheritance tax (IHT) threshold and the research showing that a greater number of people are planning to leave inheritances due to the cost-of-living crisis, the number of people falling into paying IHT is ticking up, with an additional £1bn being claimed by the Treasury this year.
However, the report found that nearly three in ten (27 per cent) of those individuals which are due to inherit from their parents are yet to plan for it.
The cost-of-living crisis has impacted many people's planned inheritances – for both better and worse.
The amount of inheritance that respondents are expecting to receive has increased for over a third of respondents (34 per cent). One in 10 (13 per cent) however, think they will be receiving less than they had previously expected.
Anderson added: “The research shows that financial advisers are in a good position to facilitate these conversations within families, as a growing number of people are now sharing their adviser with other family members.
“Individuals benefit from the knowledge of the family’s financial affairs, while enabling them to better prepare for the future from a more informed point of view.”
sonia.rach@ft.com
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