Parents should always consider their future needs – and those of their own parents – before lending or giving money to children.
If you make an outright gift and fail to live for seven years, your family could face an inheritance tax bill.
Some parents help children by becoming joint owners of the new property. But this will mean paying more as second homes incur higher rates of Stamp Duty Land Tax.
Always insist on a written agreement that binds both children and their partners – whether married or in a civil partnership or not.
Get legal advice on writing or updating wills after any gift or loan.
Transferring cash to children does not count towards getting your assets low enough for means-tested state benefits.
Which? Mortgage Advisers can help. Call 0117 911 1812.