Glossary of terms

An examination of a solicitor's bill in civil proceedings by a Court to ensure that all charges against the legal aid fund are fair and reasonable

Part of the High Court dealing with disputes in the construction industry

Someone who rents a property from a Landlord

Where more than one party owns a property but each party has a specified share

The type of property holding

The testator (or testatrix in the case of a female) refers to the person who makes a will

First-time house buyers are reported to be increasingly turning to the bank of mum and dad to help them supplement their house deposits.If you are a parent considering giving your children money for their house deposit, below are a few things that you should consider before doing so.Gifting money to children for a house depositParents often choose to gift their children a cash lump sum, so that their children can boost their mortgage borrowing amount or make up the house deposit.A mortgage company will require the parent to provide a written letter of authority to them to confirm that the monies provided are a true gift and not a loan. The reason for this is because if the money provided is a loan, then this will decrease the borrower's borrowing amount because they have a debt that needs paying back.When gifting away money, you also need to consider the Inheritance Tax implications on the gift. A person has an annual allowance of ¬£3,000 that they can give away in a tax year which is exempt from tax. You can also carry over any unused allowance from the previous tax year. This allows one parent to be able to gift away a maximum of ¬£6,000 without any Inheritance Tax implications. Also, so long as they have not gifted any further monies away in the year of making the gift and the previous tax year. If a parent decides to gift more than the ¬£6,000 (or their available tax-free amount), then the parent needs to survive seven years after making the gift for Inheritance Tax not to be payable. If they do not survive the seven years, then any gifts they make must be brought back into their estate for Inheritance Tax purposes. Depending on the size of their estate and any tax allowances that are available, it may mean that Inheritance Tax is payable on the deceased's estate.Here at Birkett Long, we can advise you on any tax implications on making a potential gift and we can provide you with individual tax advice.Loaning money to your children to fund a house purchaseParents may decide to loan their children money to fund the house deposit. Whilst many parents decide to do this in an informal way, it is much better to put in place a formal document which states the amount of money that has been loaned. Any interest that accrues on the loan and the date on which the funds need to be repaid. This is known as a Loan Agreement and will be signed by the people who are loaning the funds and the individuals that are receiving the loans. Our specialist team can assist you with drawing up a Loan Agreement to ensure that your interests are protected. Entering into a Declaration of TrustIn a lot of cases, a first-time buyer often purchases their property with a partner. A parent will only want to gift money to their own child and not the partner.Relationships may break down and the couple may split up, so there are things that you can do to protect the equity that will be in the property. This is done by entering into a Declaration of Trust. A Declaration of Trust is a document which states who the money has been gifted to and what the amount is. It will also state who owns what shares in the property and who is responsible for paying the mortgage, utility bills, and what should happen to the equity in the property if the house is sold in the future. If you would like any tax advice on gifting or loaning funds to your children, then please do not hesitate to contact one of our specialists on 01206 217609 or [email protected].

The owner's right to a property

Documents which act as evidence of ownership and set out any obligations or rights which affect the property.

A civil wrong committed against a person for which compensation may be sought through a civil Court

Invasion of private property

The examination and decision of a matter of law or fact by a Court of law at which the Judge hears evidence and makes a decision

A period of time within which the case must be listed for trial

A group of people consisting of a chairman, normally a solicitor or barrister, and others who exercise a judicial function to determine matters related to specific interests

Property legally entrusted to someone with instructions to use it on behalf of another person

Legal document which creates a Trust

A person who holds or administers property in a trust for someone else