A new year often provides the chance to reflect on what is important. With the family structure evolving to encompass cohabitation and shared parenting, families are seeking to protect their assets for the future. This is relevant when passing on assets to adult children, with a property purchase or undertaking business or inheritance tax planning, and when passing on shares.
Cohabitation Agreements
For children who live with their partners but are not married, Cohabitation Agreements can be entered into to clarify that even if the child’s partner is benefiting from an asset provided by the parents, they will have no claim should they separate. The adult child should also consider their will, as claims can be different upon their death.
Pre-nuptial Agreements
Additionally, Pre-nuptial Agreements are useful in protecting family assets which have been gifted to a child who is planning to marry. They can provide certainty, and avoid litigation, should the marriage end. Many families do not realise that if they are passing assets to their adult children, who are already married, they can still put protections in place for these assets to stay within the family, even if they wish to give the assets outright, as opposed to setting up a trust, using Post-nuptial Agreements.
Post-nuptial Agreements can be a helpful protective measure. They are entered into by couples who are already married, often to “ring-fence” a particular gift or bequest from parents, and to ensure these are not at risk should the marriage break down. Both parties should be legally advised so the agreement is clear and in writing. They can be key in situations where the asset being passed on is an interest in a business, where a dispute over how this should be treated on divorce might risk the integrity of the business going forward.
Our Private Law team are knowledgeable and experienced solicitors who will help you, and your family, with complex and high value personal matters