You might be upset if your kids ask you about your estate plan. You might feel they are jumping the gun or that it is none of their business. Yet, if they try to have a conversation with you about it, you probably should view it as them acting responsibly.
An estate plan is not only about what happens when you die. It should include measures to ensure you have support if you fall ill or become unable to care for yourself. It is a lot easier for your kids to act as you wish if know what you want them to do in advance.
Gifts could help your kids earlier and reduce tax
You can give away a certain amount of money tax-free each year. It can help you reduce your estate to below taxable thresholds and give your children a hand up when they need it. For example, your kids might be wasting money on rent as they do not have enough deposit to buy. If you gifted them some of the money you intend to leave them now, it could help them get on the property ladder sooner and be more cost-effective for them in the long run.
Discussing it now can help your kids plan
While your kids should not have to pay taxes directly on the inheritance, they will need to pay it on income the assets they inherit generate. By having an open discussion on things, you can work out the most efficient way to pass your estate to them.
There are many variables to consider when estate planning. Ensure you get legal help to understand what is best for your and your children.