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Many parents reluctant to gift money to children.

A THIRD of parents are reluctant to leave money to their married children when they die in case they get divorced, research indicates. Some 35% of parents said they were unwilling to leave an inheritance as their child's spouse could end up with some of the assets in the event of a split, according to investment management firm Rensburg Sheppards.

One-in-four parents admitted that they were not confident their children's marriages would last.

But 72% said they would like to see pre-nuptial agreements become legally binding in the UK, as this would enable them to make gifts to their children, safe in the knowledge that if they later got divorced, the money would still benefit their child.

Nick Gartland, senior financial planning director at Rensburg Sheppards, said: "Given the UK's high divorce rate, it's understandable that many parents are pessimistic about how their own kids' marriages will turn out.

"Parents may often be reluctant to interfere in their children's choice of partner for fear of causing a family rift, yet their concerns are more likely to be expressed by putting off gifting assets.

"It's understandable that many parents want to ensure the family's wealth is protected so as much of it as possible is passed on to the next generation.

"While many engaged couples may object to the idea of signing a pre-nuptial agreement, if they were to become legally binding they would play a key role in overcoming the inheritance tax planning blockages we see affecting many families."
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Title Annotation:Business
Publication:Western Mail (Cardiff, Wales)
Date:Mar 9, 2011
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