The bank of Mum and Dad (BOMAD) is often referred to by parents, children and various media outlets as another means to purchase property for the next generation.
The cost-of-living crisis, which has followed the surge in the property market over recent years, has made it increasingly more difficult for the next generation to get their feet on the property ladder.
We often discuss with parents and grandparents how to structure lifetime provision for their children and grandchildren. These conversations bring up questions that we’ve posed to one of our legal experts, Amy Lane of Thomson Snell & Passmore.
- Why are loans often the “go to” solution for parents and grandparents?
- If not a loan, what are some of the considerations when making outright gifts?
- What options are there for those not comfortable with outright gifts?
- And for those not inclined to use a Trust structure solution?
- A final option might be to do nothing?
You can read Amy’s response to these questions in her article: The Bank of Mum and Dad: Your Questions Answered.
If you’re feeling the pressures on the Bank of Mum and Dad, then please get in touch.
