New research from The Private Office (TPO) shows a marked change in how older generations think about passing on wealth, as annual financial gifts across the UK reach £17 billion, with £9.6 billion going directly towards helping first time buyers get onto the property ladder.
A survey of 2,126 UK adults aged 45 and over, carried out by TPO in May 2026, found that 81% (1722) believe parents or grandparents should help younger relatives financially during their lifetime, rather than leaving an inheritance after death. A further 83% (1743) say younger generations rely on family support more than previous generations did.
Despite this shift in attitude, the timing of gifts has not caught up.
According to a freedom of information (FOI) request made to HMRC in May 2026, data shows that in 2022/23 people aged 85 and over account for nearly 60% of all estates that included gifts, as well as the largest share of the total value gifted, suggesting that gifting remains largely an end-of-life decision.
This sits at odds with what people say they want: 71% believe financial support should be given early, when it can make the biggest difference, while only 8% think wealth should mainly pass on after death.
Property remains the leading reason for family financial support, cited by 51% of those who have already gifted or loaned money, ahead of general living costs (20%) and education costs (8%).
Among respondents overall, 88% say they would consider helping children or grandchildren buy a property, and 97% believe it is difficult, or very difficult, for young people to buy a home today without family support.
Willingness to give is high, with 64% of respondents saying they would feel comfortable giving a large sum to family members during their lifetime. However, the fear of running out of money in later life is the most commonly cited barrier, raised by 37% of respondents, followed by concern over future care costs (16%).
Only a minority of lifetime gifts result in an inheritance tax charge. Further data from the FOI shows around 15% of estates that included gifts paid inheritance tax on them in 2022 to 2023, meaning most gifts fell within tax-free allowances or exemptions.
Separately, HMRC has collected an estimated £336 million in inheritance tax over the past five years from gifting arrangements later judged not to have been fully completed, underlining the value of proper planning.
Daniel Blandford, partner at The Private Office, said: “What this research makes clear is that the bank of mum and dad has also become the bank of grandparents. We’re seeing a genuine shift in how people think about wealth, away from the traditional inheritance model and towards active giving during their lifetime.
“The figures on housing are particularly striking. When almost all respondents say it’s difficult for young people to buy without family support, that’s no longer a peripheral concern, it’s become a structural feature of the property market.
“What our clients tell us is that the desire to give is often held back by anxiety about their own future security. The question isn’t always should I give, it’s how much can I safely give.
“That’s exactly where good financial planning makes a difference. With the right advice, families can transfer wealth in a way that supports the next generation without compromising their own retirement.”
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The latest research from The Private Office highlights a powerful shift: grandparents are increasingly stepping in to support younger generations, with lifetime gifts now reaching £17 billion a year. What stands out is the intent 81% of over‑45s believe wealth should be passed on during life, when it can make the biggest difference.
Yet most gifts still happen late, often in the final years of life. That gap between intention and action is exactly where thoughtful planning matters.
For many families, early gifting isn’t just generosity it’s strategy. It helps grandchildren onto the property ladder, reduces future inheritance tax exposure, and strengthens family resilience at a time when younger generations face unprecedented financial pressures.
With clear advice and a structured plan, grandparents can support loved ones confidently, without compromising their own long‑term security. The “bank of grandparents” isn’t just a trend it’s becoming a cornerstone of modern legacy planning.