Buying a home today is usually accompanied by a substantial investment. Not obvious for people in their twenties who have only just started. But of course they also want to live comfortably.
To increase their financial strength, they often appeal to the parents. They do have the necessary resources and are only too happy to invest in their offspring. Discover the possibilities here!
Parent support: different formulas
Do you also want to give your children a helping hand with the purchase of their home? Then you have different options, each with their advantages and disadvantages :
- Hand gift or bank gift : the easiest solution from a practical point of view. You can perfectly transfer an amount or hand over cash without the intervention of a notary. However, this involves some risks: just think of inheritance conflicts and tax disadvantages. For example, an unregistered hand gift is only tax-free if you survive the donation for at least three years.
- Notarial donation : A notarial deed has the great advantage of the security. The notary records all the conditions attached to your donation, so that there is no ambiguity later. Moreover, the three-year fiscal waiting period is lost, although you do of course pay registration fees.
- Personal loan : Do you want to recover your investment partially, fully or with added value? Then a personal loan is the best choice. A partial repayment is possible by canceling the debt over time. In that case, the remission is considered as a gift, including the conditions attached to it.
Fair share? A few points for attention
All your children are legally entitled to an equal share of your assets . If one child gets more than the others, this must be corrected when the parents die. However, some play is possible. You can assign the so-called ‘ freely available part ‘ of your assets to your own preference.
The amount depends on the number of children in your family.
With a donation you are of course never sure that your son or daughter will stay together forever with his or her partner .
Their input is also not always as high as that of their partner. Therefore build in the necessary certainty. For example, have the notary state that the donation remains your child’s own good.
Tip: security is also a must for your child’s mortgage credit . Debt balance insurance is already a first step. Would you like more information about your debt balance insurance? Please contact us. We are ready for you!