This is the round-up of our grandparents' gifting and legacy series: a single quick-reference table of the key allowances, a practical checklist to work through, and links to every article and the hub guide so you can dig into whichever part matters most to you.
Key takeaways
- Annual exemption: £3,000/year, with one year's carry-forward
- Wedding gift to a grandchild: £2,500, given before the ceremony
- Junior ISA: up to £9,000/year, growing tax-free until age 18
- Nil-rate band £325,000 plus residence band up to £175,000 (grandchildren count)
- Larger gifts leave your estate after seven years; keep records of every gift
- From April 2027 unused pension pots are due to count towards your estate
- This is general information, not personal financial, tax or legal advice
The series at a glance
Helping grandchildren and passing on wealth tax-efficiently comes down to a handful of allowances and a clear plan. Across this series we cover the lot, starting with the hub: the grandparents' guide to gifting and legacy, which pulls everything together.
The detailed pieces are: gifting money to grandchildren, inheritance tax explained for grandparents, giving with warm hands, and leaving money to grandchildren in your will. The occasion-based guides cover education costs, wedding gifts and inheritance tax, funding travel and gap years, and the non-financial side in sharing your life lessons with grandchildren.
Quick-reference: the exemptions and thresholds
The main allowances at a glance (all figures illustrative and approximate, sourced as of June 2026, per GOV.UK and HMRC):
| Allowance | Amount | Key condition |
|---|---|---|
| Annual exemption | £3,000/year | Carry forward one unused year |
| Small gifts | £250/person/year | Not on top of the £3,000 to the same person |
| Wedding gift (grandchild) | £2,500 | Give before the ceremony |
| Normal expenditure out of income | No set limit | Regular, from surplus income, recorded |
| Junior ISA | £9,000/year | Parent opens it; anyone can pay in |
| Nil-rate band | £325,000 | Frozen to at least April 2030 |
| Residence nil-rate band | Up to £175,000 | Home to direct descendants (grandchildren count) |
| Larger gifts (PETs) | No limit | Outside estate after 7 years |
You can put these figures against your own estate with our estate planning tools, including the post-2027 pension change.
The checklist
A practical run-through to work down each year:
- Use your £3,000 annual exemption — and check whether you have last year's to carry forward.
- Set up regular gifts from surplus income for ongoing help like fees or lessons, and record them.
- Time wedding gifts so they are made before the big day.
- Pay into a Junior ISA or bare trust for longer-term goals like university.
- Make larger gifts early so the seven-year clock has time to run.
- Leave your home to descendants in your will to unlock the residence nil-rate band.
- Review your will after big events — a new grandchild, a marriage, a death, or a rule change.
- Check the April 2027 pension change — unused pension pots are due to count towards your estate.
- Write down the non-financial legacy too — a legacy letter costs nothing and lasts.
- Keep records of every gift: amount, date and purpose.
If your estate is anywhere near the thresholds, run the numbers with our projection tools before you commit to a large gift.
Next steps
Start with the hub — the grandparents' guide to gifting and legacy — then read whichever article fits the occasion in front of you. To put real numbers against your own situation, model your estate with our planning tools, and consider a qualified financial adviser for tailored help and a solicitor for the will itself.
This is general information, not personal financial, tax or legal advice. Every figure is illustrative and approximate, sourced as of June 2026, and the rules change — speak to a qualified financial adviser, and a solicitor for wills and trusts, before you act.
Important: This article is for general educational purposes only and does not constitute financial advice. Tax rules can change and individual circumstances vary. If you need advice tailored to your situation, please consult a qualified, FCA-regulated financial adviser. You can browse advisers in our adviser directory.
