It is not uncommon these days to hear about parents offering their children a bit of cash to help out during hard times. However, it may be necessary to think about what potential problems this generous offer may cause in the future.
When providing financial assistance to your loved ones, you need to be clear about what it is that you are giving – is it a gift or is it a loan? It is all too frequent that we see challenges made against an estate because these funds have not been defined clearly and have not been considered when drafting your Will.
If you have provided funds to a child it is essential that you review your Will as soon as possible. If you have provided funds to that child under your Will, it may be necessary to include this loan or gift to avoid any future challenges from ‘double dipping’ where another beneficiary is of the belief that person has received a fair amount from you and your estate.
We have found that most people do not think to review their Wills often enough and we recommend any time you have a change in personal circumstance (eg children, grandchildren, divorce, etc) or any time you may have a change in financial circumstances like a gift or loan to a loved one, you review your Will either prior to that change, or as soon as possible thereafter.
At Nevett Ford, our Wills and Estate Lawyers in Melbourne are here to assist you with any query you may have in regard to your Will and can be contacted on 03 9614 7111 or email at melbourne@nevettford.com.au.