Island Life Magazine Ltd August/September 2011 | Page 34

PROPERTY

LEGAL ISSUES
with Terence Willey & Company

Is blood really
thicker than water?
I believe I have lost count of
the amount of times that clients
have said to me over the years
"there is no need for me to
concern myself or to have any
formal documentation entered
into when lending money to my
children for house purchase".
With the prevailing mortgage
restraints it is becoming
much more common for
financial support to be
provided by parents to their
children to enable them to
purchase property. Before
this is undertaken I advise in
every instance it should be
protected by a Declaration of
Trust or a wider Trust Deed
which deals with conditions
upon which the monies were
provided and in both instances
such documentation can be
protected by registration. I have

encountered several cases where
either unmarried couples have
parted or divorce proceedings
have been commenced and it has
been very difficult to prove that
monies provided by parents were
intended to be a little more than
a gift.
None of us can guarantee that
any marriage or partnership
will 'stand the test of time'.
The statistics show that
the percentage of failure in
relationships continues to rise
and therefore it is essential that
such documentation is put in
place at the outset of a purchase
transaction.
The moral here therefore, is
that blood should be no thicker
than water when it comes to
such financial dealings between
members of the family!

Terence Willey & Company., Lawyers and Commissioners for Oaths
(incorporating Malcolm Daniells & Company and The Bembridge Law Practice)
Contact Terence Willey 01983 875859 or Mark Willey 01983 611888
www.terencewilley.co.uk
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