Why financial gifts are a good idea

You've worked hard for your money, and perhaps the last thing on your mind is giving any of it away as gifts - perhaps even to those who are closest to you!

However you should actually consider being generous with your gifts, and the big reason is - tax reasons.

It is actually very tax efficient to give family gifts and to effectively pass on small amounts of money each year before your death to maximise the minimisation of the tax burden if that makes any sense.

Many gifts that you can give are exempt from inheritance tax, for instance if you give a gift from surplus income, and there is also something that is known as the annual gift allowance - anything that you give out of this is exempt from this too.

So by giving small gifts on a regular basis you can help to ensure that money is passed to your children and family for example without the complications of IHT and therefore in a tax efficient manner.

There is lots of detailed information out there on this on the internet explaining the ins and outs and it might also be worth meeting with a financial expert to get some sort of plan put in place to help you manage your money as efficiently as possible for you.

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