How do I ensure money given to a child is seen as a gift, not as a loan?
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?”
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!
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Tags: Atlantic County, Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Gifting Strategies, New Jersey
