Stakeholder pensions could help grandchildren, financing firm suggests

Thu, 25 Jan 2007

People who want to pass on money to the next generation while avoiding inheritance tax liabilities have been urged to consider arranging a stakeholder pension.

Financing advisory firm Vantis has offered a range of tips to elderly people looking to keep money in the family and one of these suggestions is to start a stakeholder pension for grandchildren.

These work in the same way as standard personal pension schemes, the financial services support group explained, with the government providing contributions in the form of basic tax relief.

Moreover, an annual gross contribution limit of £3,600 could potentially leave the child with a substantial amount of pension savings when they eventually retire and access the account.

Alan Ford, client partner at Vantis, commented: "There are some useful tax incentives that can be used to give children and grandchildren a helping hand.

"We would urge people to use new year to review their finances and investigate tax-efficient methods of passing capital on to the next generation."

People who require pension planning advice may wish to consult either an independent financial advisor or an agent associated with a specific banking institution.


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