Parents giving my partner and I £50 000 deposit... how do I safeguard this money?

Kayalana99

Huh. Sorry about that its just something I have always been told/and read about. Will do my own research into it now. My OH always jokes that he has 2 years to go till my tv is half his... lol.

Good luck anyway would probally be worth having a word with a solictor anyway you'd get a free half hour so it wouldn't hurt and you'd get sound advice instead of people like me who just repeat what they hear... -.-

olympicsmummy

lol kayalana!! Yep its not true at all... its a very common misconception though!

Anyway thank you everyone who posted nice replies to my simple question :-) x

foreign_correspondent

seriousDFW wrote: »

How would it be different if they were married? Isn't having a child a great or at least equal commitment than getting married?! If not I have a very warped perspective of life, or others do.

The difference is in the law - if they were married, on seperation, the court would look at what each parties needs were, and would take this into account - so if the OP became ill or disabled and unable to work, for example, this would be taken into account in deciding how assets were split... as would the contribution she had made to keeping the family running by way of childcare etc, even if she was not contributing financially..

However, if cohabitees split, the law is very different, and in a future worse case scenario, the OP having, for example, three small children, and an illness, and having contributed to the running of the home for years, to the detriment of her career and earning potential, could all be overlooked. The court could look at what the parties intents had been, and if this not clear, would look at what intentions could be imputed.

This means that she could stay at home, sacrifice her career, and if the relationship should turn sour, she could be left with very little to recompense her.

Putting 50k into the house is no trifling matter, and should her OH dissapear with the local barmaid (or whatever) I dooubt her parent's intention would be that he would walk off with 25k of their money to fund his new lifestyle/relationship...

If they do not intend to give her OH 25k, they need to ensure a deed of trust is drawn up, and protect the money. If they do not, it could be unclear whether they had intended to give him 25k, regardless of what happens in the relationship.

Court battles can be lengthy and costly, and for all involved it's far better to have something drawn up - it can actually lead to a faster resolution of financial wrangles, and a better post -split relationship, which really matters where kids are involved.

Let's hope this is never an issue that the OP faces... but sadly, these things can and do happen, and cohabitees have far less legal protection than spouses.

Yorkie1

olympicsmummy wrote: »

yorkie1 can I just ask why the deed of trust should be in my name and not my parents? Is there a specific reason it should be done this way? thank you

I always understood the phrase 'deed of trust' to refer to how the owners of property dealt with it between themselves. Hence it being your name and not those of your parents, because they don't own the property.

BUT I am not an expert and best to double check this with any lawyer you choose to engage if and when the situation arises.

olympicsmummy

hear hear foreign correspondent :-) you speak wise wise words :-) and appear to have understand the situation.

olympicsmummy

thanks yorkie I see what you're saying :-)

sharp910sh

Why not marry your boyfriend?

chewmylegoff

sharp910sh wrote: »

Why not marry your boyfriend?

what on earth has this got to do with this thread? the OP is asking for specific advice on how to do something, not seeking your opinion on how their relationship should be structured.

chewmylegoff

olympicsmummy wrote: »

thanks yorkie I see what you're saying :-)

i think that there is also the issue that if your parents retain an interest in the money (a) it is not a gift for inheritance tax purposes thus depending on the size of their estate it may result in an IHT charge at some point down the line; and (b) the mortgage company may not like the arrangement much and may treat the money as a debt when calculating how much they will lend you. someone on the mortgage board may be able to help with (b).

i_want_one_of_those_mum

I'm not one for commenting on the boards but I would advise that you safeguard this gift.

My work colleague parents died and she was left a lot of money. She deposited £80k into a house and thought it was protected or so she thought.

The marriage broke down and it has got very nasty. He is after every penny the house would bring after it is sold. My friend will loose half her parents money because the mortgage payment came out of his account and not hers. It was stipulated that the mortgage payments would come out of her account. But she overlooked this as she didn't work (stay at home mum) and didn't give it a second thought until several years later whilst they are going through a divorce.

The judge ruled in his favour that this money be split because of this oversight. Protect it as you never know what is going to happen in 1 or 5 years time.