Originally published: IFA Magazine, 2 October 2026
Bank of Mum and Dad gifts are coming with strings attached in case they need the money back, a new study by Investec Save** has found.
The research among retired people found that one in 10 who have given gifts to loved ones in the past three years say they might need some of the money back. Around two out of five (40%) who think they might need the money back have told recipients to keep the cash in a savings account in case some of it has to be returned. The other 60% have not specifically told recipients to keep the money in a savings account but admit they might have to ask for the money back.
Most do not expect to need the full amount returned. Just 9% of those who may ask for money back say they could need the entire gift, while most estimate that they would need no more than a quarter returned. Around three out of four (73%) are definite they will not need any of the money back while a further 17% did not express a view on any future repayments of gifts.
The average value of gifts that the Bank of Mum and Dad might want returned is around £7,000, the study found, although for one in 20 (5%) the value of the gifts is more than £25,000.
Just 10% of retired people say they use the full £3,000 annual IHT exemption for lifetime gifts, while a further 17% use part of it. Any unused annual exemption can generally be carried forward for one tax year.
However more than two out of five (43%) said they were unaware of the annual IHT exemption while 29% said they preferred to keep the money for themselves.
* AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. The AER is intended to be an indicative rate to help you compare the return on different savings products.
** Investec Save commissioned independent research agency Pureprofile to interview 1,000 retired people with the sample weighted to represent the demographic profile of the UK. The research was conducted between July 8th and July 15th 2026
