Gift Money to siblings to help buy property

borkid

warby68 wrote: »

This is casting the net a bit wider and might seem a bit gloomy but you could alter your will to adjust for this amount at a (hopefully much) later date so your son receives a larger share of your estate when the time comes.

Assuming of course you are not giving 100% of your assets away now.

Beat me to it. If in the future you have enough to give your son the same amount then you can always adjust your will accordingly.

Marvel1

Too much headache.

50/50 gift now and Daughter will have to reduce her house price range.

Cakeguts

I would like to ask why you daughter rents? Some people like renting because it means that they know how much they have to pay out on housing each month. Owning a house means that you have to budget for repairs as well as the mortgage repayments and some people really don't like doing that.

If you are going to give money to your daughter you also need to give it to your son. It is not nice when a parent appears to favour one child over another.

Red-Squirrel_2

Cakeguts wrote: »

I would like to ask why you daughter rents? Some people like renting because it means that they know how much they have to pay out on housing each month. Owning a house means that you have to budget for repairs as well as the mortgage repayments and some people really don't like doing that.

This is a good point. Is your daughter in a financial position where she could afford to maintain a house? Where she could deal with things like broken boilers and leaking roofs without getting into debt?

Sea_Shell

Cakeguts wrote: »

If you are going to give money to your daughter you also need to give it to your son. It is not nice when a parent appears to favour one child over another.

I agree!!

It shouldn't matter that your son is in a more stable financial situation, you need to be fair to both. Even if your Son says he's fine with it....he might not be, really, but either doesn't want to rock the boat, or come across as greedy.

Actually, for all you know, although your son owns his home, he might have debt that this money would help clear for him, or he might need to replace a car soon etc. I'm sure he could use (or invest it) sensibly.

Give 50/50 to both.

bearsearch

I suppose one other option would be for my son to take, say, a 25% share of my daughters property I.e. Put it in shared names. I'm aware of potential capital gains tax if his share of the property goes up in value by more than £11k a year. Not sure what other implications there would be with this, given this would be a second property for my son. e.g does it affect stamp duty on the purchase ? Any other implications?

I'm aware it would then be down to my son as to when he wants his share back but we could agree an approach to that depending on different circumstances.

goodwithsaving

Do the siblings even get on? How did your son manage to get a house - did he save?
I wouldn't be happy if I'd saved for years, bought a house and then my parents loaned my sibling the money, thus saving them the saving discipline.

Split the pot in half, gift half to each child now. Don't agree to gift your son the same amount later if it isn't in the bank and protected, what if it is in the bank but later comes and it isn't there anymore?! Don't impost a financial agreement between siblings on your children. It could also get messy down the line if he wants to sell and she can't afford to buy him out. You're tying your son into an agreement for the sake of your other child.

Keep_pedalling

bearsearch wrote: »

I suppose one other option would be for my son to take, say, a 25% share of my daughters property I.e. Put it in shared names. I'm aware of potential capital gains tax if his share of the property goes up in value by more than £11k a year. Not sure what other implications there would be with this, given this would be a second property for my son. e.g does it affect stamp duty on the purchase ? Any other implications?

I'm aware it would then be down to my son as to when he wants his share back but we could agree an approach to that depending on different circumstances.

Far too complicated. Simply adjust you will to even things up if that is what you want to do, but I don't go along with the idea that the only way to be fair is to alway give equally.

After we inherited some money, we gifted more to our daughter than our son, so that she could pay off her student loan, which my son had managed to avoid. We also gift our IHT exempt allowances each year between them, but our daughter in law expecting a child next month, so next year that will probably be given to our son as they will have the greater financial need.

If I had a child who was a high earning stockbroker and another a lowly paid care worker, I would not be treating them equally as far as gifting was concerned.

bearsearch

They get on fine. It was actually my sons idea that we help my daughter to buy a property.

bouicca21

I have two children in a similar positon - one was able to buy before prices took off, the other wasn't and so has been left behind. I'll happily gift money to the younger one - and if it doesn't look fair, then I'll sort it out via my will.