5 September 2018

‘It’s not about the money, money, money…’   So the song says – but is it?

Seven top tips for passing wealth to your children

Do you think you should give your children the financial comfort which you, perhaps, didn’t have? Or do you think that they should make their own way in the world? What is the right amount of money (if any) to give? And when and how should you give it?

These are just some of the questions which parents have been asking themselves for generations, and they are questions which often come up with our clients. So, we have decided to share from our experience some of the most commonly asked questions in relation to passing on wealth, and also share with you seven ‘top tips’ which have greatly benefitted our clients.

Each tip goes into some detail so we have split them up into a series of blogs. We hope you will enjoy digesting them at your leisure!

There are some things we can help you with. We can help you work out how much you need to live on for the rest of your life. And once we know that, we can help you work out how much money you could give away if you wanted to. We could then tell you how to give it away. But how much you should give is a personal issue. It very much depends on your own views.

According to one commentator, Richard Downs, founder of, the ideal is to aim for the middle ground, as he recently expressed in the Financial Times: “The best thing you can do is to give the kids a great education combined with love and support, and help them secure their first home and enjoy life. The challenge is to provide a safety net without encouraging a sense of entitlement. Ultimately, if it is my children or the taxman, I guess I would go with the children”.

Some people take a more extreme view. The challenge for most, however, as Downs says, remains finding that balance between providing “a safety net” and “encouraging a sense of entitlement”. This is a view endorsed by Warren Buffett, the legendary investor and one of the world’s richest men, as revealed in his own comment on how much to leave the kids: “Enough money so that they would feel they could do anything, but not so much that they could do nothing” (Fortune magazine).

But how on earth do you decide what that is? If you now fear that this is all much more complicated than you thought it was, don’t worry, you are not alone.

Next week we look at what our experience shows us parents are worrying about.

Richard Wadsworth is a Chartered Financial Planner at Carbon. Contact Richard via email on or get in touch with your local office.

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.

This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action.

Tax and Estate Planning Services are not regulated by the Financial Conduct Authority.

Sign-up for our Carbon Catch-Up Newsletter


Sign-up for our Carbon Catch-Up Newsletter.

* indicates required

Carbon Financial will use the information you provide on this form to keep in touch with you and to provide updates and marketing. Please indicate below that you are happy to receive our updates in the future:

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at We will treat your information with respect. For more information about our privacy practices please visit our website. By clicking below, you agree that we may process your information in accordance with these terms.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.

Part of The Progeny Group

Progeny is independent financial planning, investment management, tax services, property, HR and legal counsel, all in one place.

Carbon Financial Partners Limited is authorised and regulated by the Financial Conduct Authority. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

The Financial Conduct Authority does not regulate some forms of tax advice.
Registered in Scotland #SC386400.
Registered Office: 61 Manor Place, Edinburgh EH3 7EG, Scotland.
© Carbon Financial Partners 2024

Client Account | Personal Finance Portal | Privacy Notice | Cookies