Given the difficulty in first time buyers, and indeed 'second time' buyers, being able to put down an adequate deposit on a property many parents are gifting or lending money to their offspring to assist them.
It is important that the gift or the loan is structured properly so as to deal with issues such as ‘protecting’ the gifted sum for the benefit of your child alone. Your own tax situation will need to be checked with particular reference to Inheritance Tax.
If a loan is to be made of the deposit then terms of repayment and how the loan should be secured for repayment may need to be considered and properly documented. Again, your own tax position and what will happen on your death concerning the loan will need to be considered.
How is the gift or loan to be treated on your death in the context of your Will ?
We can assist with the issues arising from gifting or lending funds to your offspring and document the arrangements in the proper legal form.