Legal Question in Family Law in Illinois
Giving gift of down payment to unstable couple
My parents would like to give my pregnant sister the gift of a down payment on a condo. I would say that the odds that she and her husband (unemployed for a decade) will stay together for long are a little worse than average. My sister has a steady job, but their money skills are not such that my parents would feel comfortable co-owning a place with them. Is there a way to give the gift in such a way that if they do split up, she won't lose half of it? We want to be as supportive of their family as possible but no one could afford to make such a gift again if it were lost or divided. Thank you so much for your time and advice.
2 Answers from Attorneys
Re: Giving gift of down payment to unstable couple
Hello. Since your sister is married,
anything she acquires is marital property, unless it is inherited. Therefore, any gift that your family gives is subject to be lost. However, if your parents keep control of the money, they will fair better. For instance they can go ahead and make a downpayment on a condo and then have your sister and her husband sign a promissory note that they will pay the downpayment back. Keep it as a business arrangement. In my opinion if your sister and her husband feel that they have something to lose
financially they will act in a more
responsible manner. Will be happy to discuss this further and in more detail.
Re: Giving gift of down payment to unstable couple
Your parents may consider a revocable living trust with them as trustees and your sister as beneficiary. This allows your sister to pay rent and her husband cannot get 1/2 if they divorce. This also eliminates the need for probate when your parents die. Upon your parents' deaths your sister owns the house without probate. If your parents hold title with your sister, her husband could get 1/2 of the house upon a divorce. Please call for a free consultation.
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