You are here: Home - News -

Bank of Mum and Dad needs legal and financial advice – Key

  • 17/08/2018
  • 0
Around half of over-55 parents need legal advice about gifting money to their children but are worried about the cost, data showed.


More than three quarters of over-55 parents find gifting rules complicated and are concerned about making mistakes, according to the latest research from equity release adviser Key.


Bank of Mum and Dad seeks guidance

Key’s research indicated that two-fifth of parents aged over 55 want more guidance and 78% would welcome tax incentives for gifting to children –  providing the money is used for major life events, such as a first property purchase, university fees or to clear debt.


Younger generations concern about parents

Nearly half of those 18-40 year olds living in rented accommodation worry that their parents potentially don’t have sufficient financial knowledge to make the right decisions and are concerned about a lack of support to help their parents’ get it right.

Indeed, over three-quarters of those in rented accommodation want more done to assist the Bank of Mum and Dad (BOMAD) with specific online information and guidance.

Dean Mirfin, chief product officer at Key, said: “Collectively BOMAD is a major UK financial institution but one that needs advice and guidance so that parents feel empowered to make the right financial decisions for themselves and for the next generations.

“Older homeowners in the UK own as much as £1trn in housing wealth according to our estimates and are also likely to have generated significant pension wealth as well as other retirement savings.

“The challenge for parents wishing to lend or gift money is to decide which assets are the most appropriate and most tax-efficient for gifting. We believe advice is key.

“The over 55s are right to demand increased guidance and support and it’s no surprise that the vast majority would support tax incentives providing the money is used for major life events, such as a first property purchase, university fees or debt repayment.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Percentage symbols tumble around a house
Lenders overhaul rates and products – round-up

Several lenders have made notable changes to their products and rates including extending term length and maximum loan size.