The Family Bank open for business in 2025

Law firm Holmes Mackillop says that the Bank of Mum and Dad, more accurately described as ‘Family Bank’, is well and truly open for business in 2025 as parents, grand-parents and other relatives step in to help the younger generation gain a foothold on the property ladder.

According to practice manager Carol Ann McKellar, the query ‘Is the Manager In?’ is more usually associated with a request for a meeting to discuss financial affairs at the local branch of a high street bank but is now more likely to be a conversation held in a living room with mum and dad.

“As we enter the New Year, the property market remains buoyant throughout Scotland and funding from relatives to help with the deposit or purchase price is becoming increasingly common,” she said.

“All parents want the best for their children, but, before gifting money for any reason, they should consider and understand the implications.

“Gifting means exactly that, with no right to ask for repayment, and a letter or statement confirming this may be a requirement.

“Those making a gift would be advised to ensure they can afford to give that amount of money away, familiarise themselves with the Inheritance Tax rules surrounding making gifts and, last but not least, consider whether there should there be an agreement to protect the money gifted to their relative, especially if it’s a joint purchase.”

Holmes Mackillop regularly guides clients through house purchases and is alert to these issues, often advising the family member doing the gifting and protecting the gifted money with a formal agreement.

ENDS

For further information please contact Carol Ann McKellar on tel 0141 226 4942