The Bank of Mum and Dad to fund record number of property deals in 2023

Ben Gurluk

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Given the prevalence of the bank of Mum and Dad in property transactions, advice is increasingly sought as to how such purchases should be structured from a tax and asset protection perspective. Advising on these matters will likely involve a combination of private client, tax and family law expertise. 

There is a broad array of options for parents to assist their children, including: buying a second property in the parents’ names; purchasing the property jointly with their child; giving or lending the funds; and using a trust.

There is often a temptation to enter into informal arrangements, but it is vital that all parties seek independent legal and financial advice before an offer is made on a property.