Protecting the Bank of Mum & Dad
According to a recent survey by Legal & General, more than 300,000 first time buyers were helped onto the property ladder last year thanks to help from the bank of mum & dad. Many parents are also considering downsizing to raise funds to help their children.
This can cause legal issues, particularly if the child is buying with a partner or gets married in the future. Whilst many parents are keen to help their children buy their first home, most are not so keen on seeing their hard-earned cash ending up in the hands of a third party, especially an ex daughter/son-in-law. Whether parents approve of their child’s chosen partner, or not, most simply want their money to stay in the hands of family members.
If you’re a parent thinking about helping your child, you need to think about protecting your investment.
If your child were to divorce then half of the money you provided could be lost. Imagine also if your child’s partner got into financial difficulties, or even suffered bankruptcy, then all of the money you provided could be lost to creditors.
Is that what you really want?