Q&A: How to be the Bank of Mum and Dad

During lockdown, families have focused on getting their financial affairs in order as they put plans in place to pass down wealth to their children and grandchildren.

Many people will have had an estate planning strategy in place for some time, but the unprecedented effects of the Covid-19 pandemic mean priorities and financial situations have changed for many families.

Financial advisers report that parents and grandparents are increasingly looking at ways of helping their children and grandchildren.

Younger generations, who stand to be hit hardest by the crisis, may need to call on the Bank of Mum and Dad for financial support — although parents will need to evaluate how any cash calls could impact their own retirement plans in the wake of market movements.

Other families say the pandemic has motivated them to start making financial gifts to minimise future inheritance tax bills.

In the latest in our Q&A series, we would like to hear from readers who are thinking about giving assets away.

Why do you want to give money away? Have you been thinking about gifting for a while or is this a new choice, driven by a relative’s financial hardship?

Lucy Warwick-Ching, FT Money’s digital and communities editor, and Nimesh Shah, partner at tax advisory firm Blick Rothenberg, answered readers’ questions.

This is part of a new daily series enabling you to interact with FT writers and editors on what to read, watch, eat and drink under lockdown — and how to tackle your garden, home and finances

Are you revisiting your plans due to fear of future tax rises that the UK government could bring in to cover the cost of the pandemic measures?

Leave a question or a comment below ahead of the session — and please bear in mind that this is a general discussion of the topics above and that replies from experts do not constitute individual financial advice.