Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

How do I ensure money given to a child is seen as a gift, not as a loan?

Posted on Tue Jan 12, 2016, on Estate Planning

From our “Ask a Question” Mailbag: Differentiating Between a Loan and a Gift in Atlantic County

Most Recently Updated August 1, 2018.

“I want to give my daughter some money as a gift, but not tell my other children. I am worried that, at my death, the other children will find out and claim the gift was a loan and try to make her return the money. How can I reduce the chance of a fight?”

Jointly Owned Property with Children

Differentiating Between a Loan and a Gift in Atlantic County

Differentiating Between a Loan and a Gift in Atlantic County

I suggest that you document the gift with a qualified estate-planning attorney. Then, explain to the other children that this was a gift made of your own free will. This document can be stored with your will and then be provided by your lawyer after your death. Further, I would put a clause in the will forgiving any loans you may have made. This will diminish the chance of a fight. Even if your other children were to prove the gift was a loan, it would be forgiven.

More Planning Questions?

Differentiating Between a Loan and a Gift in Atlantic County is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Differentiating Between a Loan and a Gift in Atlantic County

I hope that this article was helpful in explaining Differentiating Between a Loan and a Gift in Atlantic County. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

Atlantic County, Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Gifting Strategies, New Jersey

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Elizabeth Ray

Peter and his associates were a pleasure to work with. He explained the process clearly and provided assistance nearly instantaneously. Highly recommended for trusts-and-estates-related needs!

Klenk Law Logo
Stars

B.A.

Peter Klenk and his associates are responsive and professional - It is a pleasure to work with their team. If you have needs in estate planning or administration, they are the firm to go to in the Philadelphia area!

Klenk Law Logo
Stars

Joe Peters

Always professional and very responsive. Everyone on the staff that I have worked with. I look forward to continuing our relationship.

Klenk Law Logo
Stars

Michael Wolfgang

Peter and the whole team at Klenk Law are top notch. They are thorough, efficient and understanding of client needs. He was able to tailor our estate planning needs just how we envisioned.

Klenk Law Logo
Stars

Kevin K.

I was referred to Peter after my divorce to put documents together to protect my assets. He suggested a number of documents that would help protect my children and their future. Also, he put together wills, power of attorney and living wills. I initially spoke with him on the phone, he took 30-40 minutes to understand my situation and explain the benefits of having such documents. After a week or two, I met with him in his office and signed the documents. Everything else was remote phone calls and emails. He re-explained these documents and what whom to share. I am in good hands.

Let us put our expertise to work for you.

Free consultation within 24 hours.