insideKENT Magazine Issue 72 - March 2018 | страница 144

LAW
ADVERTISEMENT FEATURE
HOW TO MANAGE
THE BANK OF
MUM AND DAD
Philip Youdan
The Bank of Mum and Dad is booming with many parents wanting to help their
children get a foothold on the property ladder, pay grandchildren’s school fees
or simply help out during difficult times. But, with people living longer, it is
important for parents to balance this with their own needs. Philip Youdan of
law firm Cripps explains how best to do this.
Recent figures show that parents
lent more than £6.5 billion last
year to help their children get on
the property ladder – a similar
figure to the UK’s ninth largest
mortgage lender. With rising
house values, many parents are
only too willing to help out but
they should think carefully about
what kind of support can be
given, to whom and at what stage.
With people enjoying active lives
in their 70s, 80s and even 90s,
sufficient resources need to be
retained for their own needs. But
if there are enough funds to help,
should all the children be treated
equally, or should support be
based on individual needs or the
nature of the relationship?
One of the sad facts of people
living longer is the increasing
number suffering from
debilitating physical and mental
illnesses. This can create
circumstances where lifetime
gifts or wills can subsequently be
challenged on the grounds of lack
of capacity or, at the opposite end,
where vulnerable people make a
decision or sign documents that
do not reflect their wishes.
So, what steps can be taken to
protect against these risks and
how can a friend or relative
challenge actions that do not
seem right?
If a parent wishes to help a family
member out, legal steps should
be taken to protect their position.
For example, if they are helping
to fund the purchase of a
property, is this intended as a gift
or will they receive an interest in
the asset? And, if so, under what
terms? If the gift is being made
to one child but not others, is the
plan to equalise this during
lifetime or on death? And most
importantly, does their will
achieve this in the way they
intended?
If the plan is to share ownership
or occupation of the home, on
what basis is this being done and
are their rights affected? A failure
to consider the consequences
can impact not just on the legal
position but on family
relationships.
pursue where an experienced
solicitor has documented to the
contrary – where necessary, with
the involvement of a medical
practitioner.
However, what if someone
believes that a friend or relative
made decisions during their
lifetime or in the terms of their
will when they were unable to
properly understand those gifts,
or which do not accord with your
understanding of their wishes?
Where these concerns relate to
lifetime gifts or other transactions,
steps can be taken to protect the
relative by, for example,
appointing a deputy to manage
If the information only comes to
light after they have died, a relative
or friend can request a copy of
the file from the solicitor who
prepared the will and/or speak to
the witnesses to the will to
understand the circumstances
under which it was prepared. If
this reveals grounds to set aside
the will, advice can be provided
on how to do this and the costs
involved.
For more information please
contact Philip Youdan on
01732 224 013 or
[e-mail].
About Cripps
Damage can be inflicted when a
loved one feels unfairly treated
and cannot understand why – so
the reasons for making the
decision should be recorded to
avoid distress and bad feelings.
Using a specialist solicitor will
provide much greater confidence
that decisions taken will be safe
from challenge. For example,
someone seeking to assert a lack
of understanding or the existence
of unwanted influence will find
such arguments very difficult to
their finances or to reverse
transfers already made.
www.cripps.co.uk
@crippslaw
Cripps is a key regional law firm
serving clients nationally and
internationally from offices in Kent
and London. Recognised
countrywide for both its
commercial and private client work,
Cripps is listed as a top law firm by
eprivateclient. The firm focuses on
wealthier families, entrepreneurial
businesses and the real estate sector.
Find out more at www.cripps.co.uk
This article gives examples and is intended for general guidance only.
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