Appetite for lifetime gifting ‘slowly growing’ despite concerns

Appetite for lifetime gifting is slowly growing as families look to provide support earlier, despite concerns around the consequences of doing so, research from Handelsbanken Wealth has shown.

Its 2026 Wealth Survey found that 56 per cent of parents would prefer to see their children and grandchildren enjoy their wealth while they were still alive, helping younger generations navigate life’s financial challenges while avoiding inheritance tax on pension pots when new rules come into force.

However, Handelsbanken Wealth noted that while many parents wanted to share their wealth sooner, significant concerns remain about the consequences of lifetime gifting.

Just 33 per cent of parents believed that family members who received financial gifts would support them financially if they needed assistance in later life.

A quarter (25 per cent) of survey respondents were worried that gifting decisions could create family disputes, with young people particularly concerned as 36 per cent of 18-34 year olds cited this as a fear.

Over one in five (21 per cent) felt wealth could ultimately leave the family through circumstances such as divorce or relationship breakdown, rising to 32 per cent amongst those with over £100,000 in financial assets.

Only a quarter (25 per cent) of over-55s thought that gifting money could help strengthen family ties, compared to 45 per cent of 18-34 year olds.

Handelsbanken Wealth noted the findings came as many families were re-evaluating their estate planning arrangements amid changes announced at the Autumn Budget.

Fewer than a quarter (23 per cent) of people expected to gift money to loved ones during their lifetime as part of their estate planning strategy following the announcement that unused pension pots will be liable to inheritance tax from April 2027.

“Many parents and grandparents take great satisfaction from seeing loved ones benefit from their wealth during their lifetime, rather than waiting until after they’ve passed away,” Handelsbanken Wealth head, Stephen Cowling, said.

“Whether it’s helping with a property purchase, funding education or simply easing financial pressures, gifting can be a powerful way to make a meaningful difference when it matters most.

“However, our findings show that these decisions are rarely straightforward. Many people understandably worry about whether they might need that money themselves later in life, how other family members may perceive gifting decisions, and whether wealth will ultimately remain within the family.

“Lifetime gifting should form part of a broader financial plan that balances generosity with long-term security. Seeking professional advice can help families navigate these conversations, understand the tax implications, and create structures that support both current and future generations.”

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