PROTECTING FAMILY PROPERTY
Are you thinking about giving or lending your son or daughter some money to help them buy a property? Have your parents given or loaned you money to buy a property or pay off some debts? In the difficult economic climate, there seems to be more help being given across the generations than there has ever been but people don’t often think about what could go wrong. If a marriage breaks down later, it can be hard to establish what has happened. One person may say that money was a loan while another may say it was a gift. It can be difficult, time consuming and expensive for lawyers to try and unpick this once a marriage or relationship has broken down. If you are lending money to or borrowing money from someone, it is best to either to have a formal written loan agreement or a Declaration of Trust recording that the person giving the money has an interest in the borrower’s property. If the borrowers (or indeed the donors) relationship later breaks down, this makes it much easier to establish that the money was a loan rather than a gift. In this type of scenario, it is always sensible to take advice about what would happen if a marriage was to break down, even if there would seem no risk of that happening, just to be fully informed before entering into this kind of situation.
For more information contact Demelza Patricio – 01737 235616, firstname.lastname@example.org