How to protect a gift of money

When you gift money to a friend or family member to help them buy a property, you can protect that gift with a deed of trust.

The deed creates an agreement to return the money in specific circumstances.

Prepare for the unexpected.

Every year between 75,000 and 100,000 people on average find themselves insolvent. Many thousands more are have money judgments made against them because of unpaid debt.

People fall on hard times for all sorts of unexpected reasons.

They or their partner or spouse may become too sick to work.

Their partner or spouse may leave or die.

They may be victims of fraud.

Global pandemics may even cause their businesses to fail.

And, whatever the reason, when they can’t pay their bills, the people or businesses they owe money to, can apply to force a sale of property to repay a judgment debt.

A deed of trust can’t prevent the unexpected, but it can prepare you for it.

Creditors can only claim against the share of equity that actually belongs to the person who owes the money.

A declaration of trust makes everybody’s share in the property clear and can help you defend money claims over the wrong share.

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