7 Of the best any real ways to make money online ways of giving money to grandchildren PensionBee

But before grandparents let their generosity get the better of any real ways to make money online them, there are some important tax considerations. If you’d like to give money to your grandchildren above and any real ways to make money online beyond the usual pocketmoney and birthday and christmas presents, here are seven of the most tax-efficient ways to provide financial support. 1. Contribute to a junior ISA

A junior individual savings account (ISA) is a long-term, tax-free savings account specially designed for children. While grandparents can’t set this up for their grandchild themselves (unless they have parental responsibility for the child), they are free to contribute to it within the child’s annual limit of £4,260 (2018/19). Options include a cash junior ISA and a stocks and any real ways to make money online shares junior ISA, which can’t be accessed until the child turns 18. 2. Gift up to £3,000 a year, every year

You can, of course, always gift cash worth more than £3,000 to your grandchild in a tax year, however it may be subject to inheritance tax if you any real ways to make money online die within seven years. If you’re a young grandparent or are in exceptional health this any real ways to make money online ‘potentially exempt transfer’ could be worth considering, especially if you don’t have a large enough estate for inheritance tax rules any real ways to make money online to apply. There’s usually no inheritance tax to pay if the value any real ways to make money online of your estate is less than £325,000 or if you leave everything to your spouse or any real ways to make money online civil partner.

Although it may seem like a long time until your any real ways to make money online grandchild will benefit, paying into a pension is a great way to ensure any real ways to make money online they have financial security for their entire life. It can also encourage grandchildren to prioritise their pension and any real ways to make money online start saving from an early age, once they start working. And with the benefits of tax relief and compound interest, which can turn a small savings pot into a significant any real ways to make money online amount when left untouched, it’s one of the most tax-efficient ways to save for their future. 6. Make sure you pass on your pension

Before you die you can determine who stands to inherit any real ways to make money online your pension by telling your pension provider the names of any real ways to make money online your beneficiaries. You can nominate as many people as you want and any real ways to make money online can choose how much you want each beneficiary to have. Naming your grandchildren is a great way to ensure they any real ways to make money online receive some of your money after you’ve gone. And, as pensions are considered to sit outside your estate, your beneficiaries won’t have to pay any inheritance tax.

It’s worth remembering that your pension won’t always pass to your beneficiaries though, and this will depend on how old you are when any real ways to make money online you die, whether you’ve started drawing your pension and the type of pension any real ways to make money online you have. You can find out more in our ‘ pension rules after death’ article, and add your beneficiaries in the account section of your any real ways to make money online beehive if you’re a pensionbee customer. 7. Keep your will updated

While it can be morbid to think too long about any real ways to make money online what will happen to your money and possessions after you any real ways to make money online die, writing a will is really important if you have specific any real ways to make money online wishes. If you don’t write a will, and have it validated, your money, property and possessions will automatically go to your next of any real ways to make money online kin such as your spouse or civil partner or the any real ways to make money online next closest relative after that. In such a scenario grandchildren can often be overlooked.

Just as important as it is to create a will, it’s also important to keep it up to date. Making sure you add the name of each new grandchild any real ways to make money online can make the process of dividing your estate much more any real ways to make money online straightforward after you’re gone. If you want something specific to go to a particular any real ways to make money online grandchild, such as a sum of money towards their first car any real ways to make money online or first home, it’s a good idea to write it down.

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