by KYW's Salil Gutt

Parents are willing to help their adult children financially.  Any apprehension is more around the issue of who gets the money if the children were eventually to divorce.  Here are some things parents can do to keep money in the immediate family and not have it go to errant children in law.

The first major gift is at the time of home purchase by children. Parents often are the ones who gift money towards the downpayment. If the home is purchased in joint name then the cash gift is deemed as having been made to both spouses. It becomes part of marital property subject to split.  Depending on the amount of the gift, it may be wise to specify in writing that the gift is to the child or take a demand note from the couple. N o interest can be charged as long as tax rules are obeyed. Gifted property is deemed separate.

The most vulnerable area is inheritance. Inherited property is not subject to equitable distribution though the appreciation is. I always recommend clients keep inherited property in individual names and not move it to jointly held assets.