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How do I ensure money given to a child is seen as a gift, not as a loan?

Posted on Tue Jan 12, 2016, on Estate Planning

From our “Ask a Question” Mailbag: Differentiating Between a Loan and a Gift in Atlantic County

Most Recently Updated August 1, 2018.

“I want to give my daughter some money as a gift, but not tell my other children. I am worried that, at my death, the other children will find out and claim the gift was a loan and try to make her return the money. How can I reduce the chance of a fight?”

Jointly Owned Property with Children

Differentiating Between a Loan and a Gift in Atlantic County

Differentiating Between a Loan and a Gift in Atlantic County

I suggest that you document the gift with a qualified estate-planning attorney. Then, explain to the other children that this was a gift made of your own free will. This document can be stored with your will and then be provided by your lawyer after your death. Further, I would put a clause in the will forgiving any loans you may have made. This will diminish the chance of a fight. Even if your other children were to prove the gift was a loan, it would be forgiven.

More Planning Questions?

Differentiating Between a Loan and a Gift in Atlantic County is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Differentiating Between a Loan and a Gift in Atlantic County

I hope that this article was helpful in explaining Differentiating Between a Loan and a Gift in Atlantic County. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

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Atlantic County, Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Gifting Strategies, New Jersey

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