.L[[PUN ( .-( >YP[[LU +V^U Where the parents interests are not adequately protected: The parent could lose all the money put into the property thus making it necessary to take legal action against the family to recover it; The law may consider that the intention was to give the money to the child without wanting it back; and/or The parent could end up homeless with a reduced pension. Getting a GFA written down forces a parent to think about contingency plans and what can happen if an arrangement is no longer workable or an unplanned event occurs (for example, the child’s relationship with their partner may break down and they decide to sell their house). Below are just some of the points we discuss with our clients so we know how best to protect a parents interests when drafting a GFA: Do they want their name to be retained on the title to the property? Are they a pensioner? Are the assets/money pledged to be gifts to the child? Do they have other children and how will the GFA impact on their inheritance? How will the parent’s contribution be calculated? What kind of personal care and support will their family provide them with, if any? Will they be liable for any upkeep of the property? What if their health worsens and they need to be moved out to a medical facility for a prolonged period? If assets are involved, under what circumstances would they allow them to be sold? What if the child passes away? How will the parent be compensated if the GFA does not work out? The general rule is that once established, granny at rights or interests cannot be revoked simply because a child wishes to sell the property. They may: Sell the property with the parent’s arrangement as a condition of sale; Transfer the parent’s life tenancy or interest to another property, or Compensate the parent nancially for losing their ‘granny at interest’. GFAs should not be entered into lightly. At Owen Hodge Lawyers, we understand that it is particularly important for the parent to obtain independent legal and nancial advice given that so much is at stake, and to prevent the possibility of nancial abuse occurring. Contact us to schedule a consultation with our team of estate planning lawyers. 13
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