Making the most of your gift

Ishould remind readers that it has always been and no doubt will continue to be the aim of asset-rich parents to provide for their offspring during their lifetimes or after they themselves have passed on.

That is a deeply human sentiment, which is to be lauded, especially when your offspring finds it harder than ever to get a foot on the property ladder in an environment that has seen house prices escalate beyond the means of most younger people. The support of Mom and Dad or Grandparent has become essential in many cases.

But keep the following in mind. When you make the contribution towards buying a house in the form of a gift then you are acting very unwisely.

In making a gift you may cut yourself off from making any claim for a rest home subsidy in the future as it is regarded as a deprivation of your assets. All such gifts should be done as simple loans.

In making a gift to your offspring you are causing a loss to them if the couple separate at a later stage. The separated partner will then take half of your gift with him or her. A simple loan to both of them is the answer.

In making a gift to your offspring you are making it easy for any creditors who chase them for money to take charge of your gift and that is a loss. A simple loan is the answer, possibly with a personal mortgage attached to it if they are in business.

There is a lot at stake for you and for them.

Now is the time to talk about that when you are assisting them in the biggest acquisition of their lives.

They will be happy that you have taken legal advice to guide you through all the hoops that are required nowadays.

As always please call me if you have any queries or if you wish my legal support in the matter.