02 Jun 2020

Beware the pitfalls of the Bank of Mum and Dad

According to Legal and General the ‘Bank of Mum and Dad’ lent their children £6 billion in the UK last year.

For any of you that either have made, or have considered making gifts to your family, you will be aware how important it is to document these gifts as records would be called upon in the event of your death, however, it is also really important to document any loans.

There was a case last year, where a mother claimed to have lent her son £130,000 to help towards the cost of his home. The son then predeceased her, and when she wished to claim her loan back from his estate, with no formal record or mention of it in his will, the court ruled against her and she did not see a penny returned.

Money can be an emotive subject, but even though you may trust those that you give financial support to, keeping records could be vital for unforeseen events.