Protecting Family Inheritence - Retrospetive Loan vs Prenup?

Hi there

I was seeking some insight into how I could protect my family's assets against any future relationship breakdown.

Situation is that one of my parents investment property was transferred to my name for tax reasons for my parents. The transaction was performed as per any private transaction via settlement agents.

I have subsequently purchased another property for which my parents have 'gifted' me a significant portion of money towards the purpose. No loan agreement between my parents and I was made at that time and the intention was to help me purchase the property and for the money to stay in my family. I have entered a casual romantic relationship but we are not in a defacto relationship.

My parents and I would like to try and ensure that this amount is protected such that it stays in the family/my name if I were to enter a significant relationship and any associated unfortunate relationship breakdown.

My understanding is that a 'pre-nup/binding financial agreement' is not warranted int his case as my relationship is still in its infancy. I was hoping there was some form of legal instrument that I could enter that states my current assets in a point in time prior to entering a serious relationship which could be evidence in case of future relationship breakdown associated legal proceedings. Does this exist?

Alternatively, would a retrospective loan agreement between my parents and myself work as an instrument for my parents to make claim of the 'gift' for which they have given me thus providing evidence to the court if required for the intention of the 'gifted' money?

Thanks for your advice - and yes I will also seek formal legal advice as well - just wanted to tap the brain trust in case I'm missing anything in particular.

 

Your understanding is probably wrong here.

Maybe if you're into lying and fraud?

Do you even know what you're protecting yourself against? You probably don't even know how family law works - so why do you presume certain things will protect against it?

 

Only to post evidence on a public forum .....
My parents forced me into my first property purchase, they stumped up a substantial amount towards this, then didn't like my choice in spouse !!!
I happily signed a loan agreement when put in front of me and started repayments, it was their money, never really a gift as such, I was happy for the assistance/leg up and went on to repay every dollar plus the going interest rate (long since paid off).
The ATO may consider this a gift and taxes may be payable......

 

When did Australia start having gift taxes?

 

Don't get married or into an official de facto relationship.

Don't move in her place or have her move in yours. Rent it out as an IP.
You can rent another place to live with her with both names on the lease and seperate finances. As room mates.

If they were in a trust with a non related trustee and no loans you may have a chance.
Otherwise just about nil.

The cycle of life is generally that the parents pass on first, then it's yours.
Unless they out live her, maybe not a good plan.

And I ain't no lawyer.

 

'Retrospective loans' ! These sorts of things happen all the time and the courts are suspicious.
You suddenly enter into a written loan agreement when entering a new relationship with the actual money transferred years earlier with no documentation.

A BFA would be the way to go

 

To clarify, the intent for all of this is to generate some evidence of the ownership of the funds within my family in the unlikely case of my relationship breakdown in the future. It is just future planning not to avoid fraud etc.

 

But was it really a loan?

 

Thanks for that input, interesting insight. Again, the purpose of this is not to make sure completely that we have seperate finances with my future serious partner but just that there is evidence that my parents contributed some funds to my property purchase. Just planning for the worst!

 

My parents and I are flexible about this point. I guess our primary outcome is to ensure some traceability to the funds for which they have contributed to my purchase in case of a future relationship breakdown. In essence I'm looking almost a 'prenup/BFA for a single person' or a 'financial statement for this point in time'. If its easier to be called a loan then we could make that work.

 

Sorry, any time anyone say's "their parents" I think of retired people
https://www.google.com/url?sa=t&sou...sQFnoECCEQBQ&usg=AOvVaw0cICeD3EDG-4UAdrjiNyss
Like with everything, planning and understanding the rules is the first step

 

It doesn't sound like it was a loan from what you write.

 

But you already have that evidence. Why would that be even in dispute?

 

You can do whatever contract/documents you want but if it's in your personal name and the relationship is broken and your ex is not scared off with your tactics and take it to court with a good lawyer I think you will be on losing side

A few points
.-Courts frown on non-commercial loans (no interest or non-commercial rates), have you been paying repayments constantly since the start?
- If it was a loan I hope you declared that to the bank as you are meant to declare all your outstanding loans while attaining finance for property etc.

The courts see this stuff all the time, either transfer the assets out before a relationship starts or just be nice to other half and hope they reciprocate

 

Aren't BFA's very expensive and not really worth considering as it doesn't really protect anyway? I think a while back @thatbum said something along that line if I'm not mistaken?

 

That is an urban myth - they can be expensive though but effective

 

A BFA might scare a potential partner away (ironic bc if they truly loved you for the right reasons, they wouldn't have an issue signing one).

Perhaps Piston Broke's idea isn't bad advice. No idea how that will hold up in a court....but it sounds ok.

 

If you are not a defacto or married you generally don't have anything to worry about. But you could still be a defacto without living together and on death there can be arguements between the family and the so called spouse about whether there was a relationship that amounted to defactoness.

 

If you are cohabiting then get a BFA asap and update as you go.

Family Law is based on the Deluth Model (1981) that operates on the premise all men are perpetrators and all women are victims, regardless of the facts.

Every single person in the legal industry is trained (brainwashed) in this model and probably unaware of the origins of this philosophy.

I realise there are always exceptions, however, if you enter the family law system, as a man you have very little chance of success.

BTW, defacto relationships can be recognized as such from day 1 of cohabitation and I can see a day coming soon where men who don't live with a woman will still be on the hook for supporting her and her children if she has them.


My theory its supported by the legal fraternity (judges who pass laws) to generate revenue as people (males) are waking up to the marriage scam.

Please go and see 3 family lawyers in your area and ask what happens when she changes her mind about you, you will be shocked and won't believe it until it happens to you personally.

Ps. trusts can be unwound as well if the circumstances warrant it, according to family law interpretation and "logic".

 

Why do you assume the OP is male? They did not say.