For many Australian parents, helping their children financially is simply part of family life: contributing to a home, helping with a business, paying education costs or providing support when times are tough. But when you are gone, what happens to the money you have already given?
Was the money a gift or a loan?
If it was a loan, you may expect the outstanding amount to be repaid to your estate. If it was a gift, there may be nothing to repay. Without clear records or instructions, however, family disagreements can arise.
What if one child received more?
Financial support is not always equal between children. One child may have received a substantial deposit for a home while another received little or nothing. You may be comfortable with that but have you considered whether it should affect their inheritance or their relationship?
Your Will and estate plan can be structured to reflect your intentions and reduce uncertainty for your family.
Your Will should reflect your lifetime giving
If you have been the “Bank of Mum and Dad”, your Will should not be considered in isolation from the financial support you have already provided.
If you have spent years helping your children financially, make sure your Will tells the same story.