New Model Adviser: Lynne Rowland’s article ‘The downsides of being the Bank of Mum and Dad’
Giving your children money might seem like an easy option but be careful to document everything you agree. There is rarely documentation to formalise any arrangements for repayment of a loan or protection of a gift, which can cause issues in the future if the property is subject to relationship breakdown, bankruptcy or death of the donor or recipient. Money is an emotive topic of discussion for families, but thought must be given to the consequences of providing financial support. Documenting the nature of that support benefits everyone.
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