When you are writing your will and deciding who you want to leave your wealth to, you may assume that most of your estate should go to your children. This is very common and seems like the most logical approach for most families.
However, you could skip a generation and leave some or all of your estate to your grandchildren instead.
The most suitable choice for your family will depend on your circumstances and wider goals, but there are several distinct benefits to skipping a generation in your will.
Read on to learn more.
Younger generations might benefit more from the wealth than your adult children
An inheritance can help your beneficiaries meet important financial milestones in life. However, it’s worth noting that, according to Fraser and Fraser, the average age that UK adults receive an inheritance is 47.
By this age, your children will be more likely to own their own home, be married, and have a family. Hopefully, they will have started building a healthy retirement pot, too.
Meanwhile, your grandchildren likely won’t have reached these milestones yet. As the cost of living rises, your inheritance could be more useful than ever in helping them get ahead financially.
For example, the Homeowners Alliance reports that the latest figures from 2024 show the average house deposit for first-time buyers across the UK was £61,090. In certain regions, this is much higher – buyers in London would have needed £124,688. These figures have likely increased in the past few years.
High living costs make it challenging for younger people to save this amount and get on the property ladder. An inheritance could remove this barrier.
Further to this, younger generations could face difficulties when saving for retirement. Indeed, according to Pensions Age, 48% of Generation Z are struggling to save adequately.
The lasting financial security that comes from an inheritance could mean it’s easier for your grandchildren to save in the future. Additionally, they could contribute a portion of the inheritance to their pension, giving them an early boost to their savings.
The compound returns they might potentially receive on this amount over the years could make a significant difference to their quality of life in retirement.
So, as you can see, an inheritance may be far more valuable to grandchildren who are struggling to meet important financial goals.
You could avoid passing a large Inheritance Tax bill down the generations
As important thresholds remain frozen, the amount of Inheritance Tax (IHT) collected by HMRC is rising.
Figures from Statista show that IHT receipts totalled £8.47 billion in 2025/26. This is a notable increase from £8.25 billion the previous year and £7.5 billion the year before that.
This upward trend is likely to continue as the nil-rate bands – the amount you can pass on before paying IHT – are set to remain frozen until 2031, while the value of your estate will likely increase. This means more of your wealth is pulled into the taxable range.
Additionally, your pensions will come under the scope of IHT for the first time from April 2027 onwards.
If your children already have a sizeable estate that is likely to trigger an IHT bill, passing a large portion of your wealth to them could only compound the tax burden. In some cases, your children might pay IHT when inheriting from you, and your grandchildren will also face a tax bill when they eventually receive the wealth.
In comparison, if you pass the wealth directly to your grandchildren, you could bypass the first IHT charge. Your grandchildren then have many more years to spend the wealth and plan to mitigate IHT for their own beneficiaries.
Gifting wealth to grandchildren now could improve tax efficiency
It’s worth considering the benefits of skipping a generation when writing your will. However, you don’t need to wait until you pass away to start transferring wealth to your grandchildren.
There are several gifting allowances you might use to pass a portion of your estate to your beneficiaries without triggering an IHT charge.
For instance, each individual can gift £3,000, and this amount immediately falls outside your estate for IHT purposes. You also have separate allowances for weddings, small gifts, and regular payments.
Gifts that aren’t covered by specific allowances are potentially exempt transfers (PETs) and may be free from IHT provided you survive for seven years after giving the gift.
We can help you take advantage of these allowances and exemptions to make your estate plan as tax-efficient as possible.
Get in touch
To discuss the most effective ways to leave a legacy for your loved ones, please give us a call on 01276 855717 or email info@braywealth.com today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article.
The Financial Conduct Authority does not regulate estate planning or wills. Please note, will writing is a referral service.
HM Revenue and Customs’ practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Remember that taper relief only applies to gifts in excess of the nil-rate band. It follows that, if no tax is payable on the transfer because it does not exceed the nil-rate band (after cumulation), there can be no relief.
Taper relief does not reduce the value transferred; it reduces the tax payable as a consequence of that transfer.
Approved by the Openwork Partnership on 04/08/2026
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