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"Reverse inheritance"

Journalist: Imogen Tew, Freelance

ended 19. August 2026

Hello all. I am working on a story for The Sunday Times on “reverse inheritance” - children or grandchildren financially helping their parents or grandparents, whether that be helping with everyday living costs, helping them retire or purcashing a home etc.

My questions are:

  • Is this something you are seeing more with wealthier clients? With a decline of DB pensions etc and a rising cost of living, are wealthier middle aged working adults helping their parents more often?
  • Do you think this is something we may see more of as wealth starts to shift?
  • What are the potential pitfalls that those making these transfers be aware of?
  • Do you tend to see clients feel very joyful and happy that they can help their parents in this way? I imagine it must be a nice moment?

As always, as much detail and colour as possible would be greatly appreciated, and if you are able to provide any anecdotes from clients's situations then that would be amazing.

Thank you so much in advance!

4 responses from the Newspage community

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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
With the cost of living and doing business crises squeezing every household, "reverse inheritance", where adult children prop up ageing parents financially is accelerating across the UK. It's not just a high earners' game funding retirement top-ups or private care; every income bracket is mucking in to keep elderly relatives afloat. Cross-border dynamics sharpen the picture. Expat children earning abroad ride the FX swings: a couple earning tax-free in Dubai, where the Dirham is pegged to the Dollar, sees their income convert into significantly more Sterling when the Dollar strengthens, easing UK care fees and living costs. But reverse inheritance has pitfalls. Unspent cash gifts can swell a parent's estate and push up Inheritance Tax on death; buying property for parents risks higher Stamp Duty and Capital Gains Tax. And parents often struggle to accept help gracefully, so it needs careful handling.
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Riz Malik
Independent Financial Adviser at R3 Wealth
I’ve helped clients buy property to help their parents but those instances are few and far between. As more people give with a warm hand rather than the col one,, the expectation is that those beneficiaries will help in later years when needed. That doesn’t need to be financially, it can be with time and help with daily activities. However, my suggestion would be don’t give with the expectation of getting anything back in the future. An argument, messy divorce or new partner would change the dynamics of a family relationship very quickly. All the help you have given to your children can be quickly forgotten. Make sure your financial plan is robust to weather such instances.
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Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
We are starting to see inheritance work in reverse. For decades, the financial plan was built around parents helping children. Now, in some wealthier families, the children are the financially strongest generation in the room.

I think this will become far more common. Longer retirements, weaker pension provision and higher living costs mean some parents may be asset-rich but cash-poor, while their children are at peak earning age.

But generosity still needs a plan. I would never want someone funding a parent’s retirement while quietly damaging their own. You have to consider affordability, tax, ownership if property is involved, care costs and what happens if circumstances change.

Emotionally, though, it can be incredibly powerful. There is something quite special about reaching a point where you can turn around and say to the person who spent years looking after you: “You don’t need to worry about this anymore. I’ve got it.”
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
Yes, we've helped several clients in this exact scenario. Generally it's higher-earners in their 30s and 40s helping parents stay in the family home they grew up in, where the parents have interest-only mortgages that are coming to the end of the mortgage term.

The parents have no viable way of paying off the interest-only mortgage balance other than moving or downsizing which could mean having to move away from family and friends, into something like a park home which isn't something they really want to do.

The adult children we worked with were in a position to take on a mortgage to buy the parents' house, which worked well for both sides, particularly where the parents were helping with child care.

These transactions need to be entered into with proper consideration, including understanding the future mortgage, ownership, inheritance tax, care fees and other implications both on the parents, and the children.