Lifetime Gifts
People are becoming more savvy about the benefits of estate planning. They are also living longer which means that potential beneficiaries have longer to wait for their inheritance. With this in mind, elderly parents consider transferring their home to their child(ren) along with other substantial gifts during their lifetime.
In most circumstances, their home is their largest asset and so this decision should not be taken lightly.
Safeguards must be in place to ensure that the parent is not under any undue pressure or influence to make the transfer. Their needs have to be protected. For example, they may want to continue living in the property or go into a care home.
Our Trust, Tax and Probate Team can explain your options to you and will ensure that you get the outcome that is in your best interests.
Capacity to make gifts
It is particularly important to seek legal advice if there are any concerns over the donor's mental capacity. The level of capacity required for a lifetime gift varies depending on the circumstances. If the gift is the most substantial asset in their estate, such as their home, then the capacity required is the same as that which is needed to make a Will. If, however, the gift is very small relative to the size of the estate, then the threshold for capacity is much lower.
Undoing lifetime gifts
A lifetime gift can be challenged. For example, the donor may not have had capacity or was under undue pressure to make the gift. Our team can bring or defend actions to undo a lifetime gift during the donor's lifetime or upon their death.