Bank of Mum and Dad – Loan or Gift Consequences

Aim:

To discuss the fact that the Bank of Mum & Dad is the UK’s 10th largest lender and consider the advice clients need before embarking upon helping their children onto the property ladder

Outcome:

Practitioners will be able to discuss the practicalities with their clients

Agenda:

Introduction

• The importance of putting the arrangement into writing
• Tax considerations
• Asset protection

Options

• Buying a second property in parents’ names
• Purchasing a property jointly with their child
• Taking on responsibility for third-party mortgage repayments
• Gifting the child the funds to buy the property in their own name
• Lending funds to the child to purchase the property
• Using a trust to purchase the property