For many retirees, the idea of spoiling their grandchildren is all too common. This may mean gifts for birthdays and Christmas but some want to go further than that. Giving is great but be sure that you don’t compromise your own financial security by doing so or even your aged pension.
Some grandparents may want to offer support by way of starting an investment portfolio to help pay for school fees, however, it is important that you consider the ownership of this portfolio as there may be adverse tax consequences if not structured correctly.
The timing of offering financial support can impact the end outcome as well and it pays to seek financial advice on this matter. An example would be gifting property which may trigger stamp duty/capital gains tax liability.
Consider your estate planning if you decide to leave something to your grandchildren as all families are different especially if you have a large family or blended family. Not having a valid will can impact the length of time it takes to pass down assets or even alter the eventual outcome.
Have you considered any of the following:
Speak to us today and we can help you put together your plan to help you achieve this and many of your other goals.