| Article by Chris Lucas |
You may be interested to know that if you make a particular
type of gift to one or more of your children during your lifetime, this could
affect your children’s inheritance under the terms of your will.
The type of gift referred to here is known as a ‘portion’. A
portion can be described as a substantial gift (usually of money) from a parent
to a child which is made with the intention of establishing the child in life
or making permanent provision for them.
A typical example of a portion would be giving one of your
children a sum of money to be used as a deposit towards buying their first
home. Whatever the gift might be, the key requirements for it to be considered a
portion are as follows:
- The gift must be from a parent (or a person acting in loco parentis i.e. someone who has assumed parental responsibility) to a child.
- The gift must be substantial in value - what ‘substantial’ means will depend on the circumstances and can be open to interpretation, but generally speaking, any gift of £20,000 or more is most likely to be considered substantial.
- The gift must have the effect of establishing the child in life or making permanent provision for them e.g. deposit for a first home or sum of money to enable the child to start up their own business.
If you have already made a will, then it is important to be
aware of the potential effect of portions when you subsequently pass away.
Essentially, any portions made during your lifetime after you have made your
will can have the effect of ‘satisfying’ legacies left to your children under
the terms of your will. This is known as the presumption against double
portions.









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