PROPERTY LADDER PITFALLS

Watch your step to avoid family fall-outs when it comes to borrowing or lending cash.

If you’ve invested money as a deposit in your grandkids’ house, it’s not money you can get back in a hurr y. There’s usually a minimum term before your savings can be released if you’re using one of the family mor tgage deals.

Do be clear about whether the money is a gift or a loan to avoid awkward misunderstandings and tricky conversations further down the road.

If you’re giving them the money; it’s wor th checking out any potential inheritance tax implications. While you can gift fixed amounts to your grandchildren, for example on occasions like their wedding, with larger amounts you’ll need to live for a fur ther seven years to avoid the money being considered as par t of your estate.

While not all estates are liable for inheritance tax, which kicks in at £325,000, this is all worth checking. The Money Advice Service has a helpful guide

Don’t want the bother of a mortgage? You can still lend a hand

www.moneyadviceservice.org.uk A gift may not be as simple as it sounds