Marlborough Living Jan - Feb 2020

LIFE
GIFTING:
PLANNING
FOR THE
FUTURE
Parents often want to help their children with their future
plans. They often seek advice about the best way to help
financially when they make a will. Key issues are when they
purchase a home or want to start a family.
Gifting money to children to help
them buy their first house is ever
more commonplace because of
the high cost of housing. Although
many carefully consider the tax
implications of making gifts, they
must also consider how such funds
will be taken into account should
the relationship break down. Why?
If a relationship breaks down, that
gift, often an advancement of a
future inheritance, may fall into
the matrimonial pot of assets and
as a consequence be available for
division.
Avoiding the gift becoming a
matrimonial asset
One option to help prevent an
unwanted “mingling” of assets
is to establish a pre-nuptial or a
post nuptial agreement. These can
clearly set out wishes as to what
will happen should the relationship
break down. They are not strictly
binding on a court upon marriage
breakdown but if correctly prepared
and certain conditions are fulfilled
they will be taken into account and,
depending on the circumstances of
the spouses, may be binding. The
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