TRANSACTIONS OF ASSETS
Gift and loan agreements
Family members often transfer funds between one another without documenting the transfer properly. One of the common transfers of fund is of parents to their child for his wedding or to help with the purchase of an apartment. Unfortunately, this may result in a dispute, when the child get divorce, or has other plans for the money. In such situations, the parents may claim that the transfer was in fact a loan, and demand its repayment.
Under Israeli law there is a presumption that any transfer of funds amongst family members is considered a gift, unless proven otherwise. Therefore, it is clear to see that executing an agreement - loan or gift - with respect to that transfer is of significant importance. Such agreement should be drafted carefully, while bearing in mind the possible future scenarios.
Execution of gift and loan agreements is also important considering the bank's duties under the law and its requirement to properly ascertain the nature of the transaction.
Real estate transactions
Whether it's the common sale agreement or a transfer of a real property between family members for no consideration, each transaction should be carried out with care which keeping in mind the implications it may have on the family.
In addition to real estate transactions, caveat notes can also be used to achieve various goals of the family.
MEYTAL LIBERMAN, Advocate
Trusts and intergenerational transfers of assets.
Trusts | Wills and Inheritance | Enduring Power of Attorney | Prenuptial and Joint Life Agreements | Transactions of Assets
