There is lots of talk about the so-called Bank of Mum and Dad this week, with new figures showing the popularity of this important lender.

The research from Legal & General and CEBR found parents will lend a total of £6.7bn this year.

It's a big increase on the already substantial £5bn lent by parents last year and means the Bank of Mum and Dad becomes the 9th biggest lender in the UK.

On average, parents giving money to their kids are making a contribution of £21,600. Most of this funding is going to adult children under the age of 30.

With property becoming increasingly expensive, parents are often the last resort for young adults trying to get onto the property ladder.

For anyone who is thinking about making a loan from the Bank of Mum and Dad, it's important to factor this into your overall Financial Plan and understand its impact on your lifetime cash flow.

The nature of the payment can also have some consequences, especially from an inheritance tax planning perspective.

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