The Bank of Mum and Dad takes their kids to court

Michael Lloyd

September 3, 2019

The Bank of Mum and Dad have been taking their grown-up children to court to get their money repaid.

It’s estimated there are 12 to 15 of these cases every month.

Greg Williams, a barrister at Coram Chambers, said: “A frequent example is where the parties agree that the parents of one of them contributed a large sum to the purchase of the property, but they cannot agree what the basis of that contribution was.

“Was it a gift, a loan, or an investment leading to a beneficial interest?”

A partner in the law firm Boodle Hatfield, Colin Young, told The Sun he worked on a case where the parents thought they invested money to buy a home with their sons. This was funded from selling their former home.

One of the sons lived in the house while the parents lived in the basement.

Young said: “They had not placed any restriction on the sons selling the property while they remained there – and then the sons sold, and mum and dad had to leave.

“One of the sons refused to acknowledge that the money invested… wasn’t purely a gift, and the parents had to go to court arguing that they had an interest in the property.”

The parents couldn’t prove this and the parents were left with no money from the sale of property while it was split 50:50 between the sons.

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