Most older parents who help their children to fund major life events are worried about the tax and financial implications of making these gifts, research by Key has found.

According to a study of 950 homeowners aged 55 and over, 76% find gifting rules complicated and are concerned about making mistakes.

Additionally, 24% say they are worried they lack the knowledge to make the right financial decisions.

The research suggested that with high numbers of home purchases assisted by wealthy parents, there is a need for more support and guidance in this area around the implications.

Previous research by Legal & General estimated that more than a quarter of homebuyers in the UK receive help from family or friends.

Dean Mirfin, chief product officer at Key, said:

"Older homeowners in the UK own as much as £1 trillion in housing wealth 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, and getting advice is key."

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