Protecting any gifts YOU make

Many parents (and grandparents) are making substantial gifts to family members, often to help with large deposits for house purchase. It’s known as the “bank of Mum and Dad”!

However, your generosity may result in a loss for you and your family unless you protect the gift in some way. This can be done by making a gift via a Trust.

42% of marriages end in divorce

Source: Office of National Statistics
- December 2012

Case Study – Mr & Mrs Smith

Mr Smith is only too aware of how difficult it is for a young couple to purchase their first home. He therefore decides to gift £50,000 to his son who is getting married and buying his first home with his new wife. Unfortunately, five years later the marriage ends and their assets are divided as part of the divorce settlement.
This includes the jointly owned house.

It didn’t have to be like this. Mr Smith could have used a Protective Gifting Trust to advance the £50,000. If he had done this, the £50,000 loan would have been recalled on the divorce.

You find out more about this by speaking to us.