Registering your assets in your parent’s name can backfire, especially when the parent passes away or when marriages break down.
This issue regularly arises as a topic on social media, with men asking if it can protect them from losing a property in the event of a divorce.
According to Martin Vermaak Attorneys, a Sandton-based law firm specialising in family law, divorce and estate matters, putting your assets in someone else’s name may seem like a harmless decision but it can have serious consequences.
“The Deeds Office title-holder is the legal owner. Who paid does not change that,” said the firm’s director, Martin Vermaak.
Vermaak explained that when property or land is registered in a parent’s name, that person legally owns it, regardless of who paid for it.
“If married in community of property, using joint-estate money to put assets in a parent’s name can trigger spousal-consent rules and financial adjustments under the Matrimonial Property Act,” he said.
If your mother dies without a will, her spouse and all her children share the inheritance, even if the property was bought with your money
When the parent passes away, those assets automatically form part of their estate. “The asset falls into her estate and is distributed by her will. If there is no will, intestate succession applies: her spouse [if any] and her descendants inherit first,” Vermaak said.
In other words, if your mother dies without a will, her spouse and all her children share the inheritance, even if the property was bought with your money.
Vermaak said proof of payment also doesn’t automatically change ownership, it may support a personal claim or help prove a nominee or simulated arrangement, especially for movables. “But it does not automatically change ownership of land already registered in her name,” he said.
He added that a will could help if it specifically states that the property should go back to the person who paid for it.
“Yes, if your mother’s valid will specifically bequeaths the asset to you,” he said.
“Siblings vs payer: the estate says ‘it’s hers’, the payer says ‘I only parked it there’. Often resolved via the executor; contested matters go to court.”
Vermaak said in some cases, the spouse of the person who paid may also step in, especially if the money came from a joint estate.
“A spouse claims joint-estate funds were diverted; courts can adjust the division or set aside tainted transactions.”
Vermaak warned that courts take a dim view of people who use parent’s names to hide or protect assets. “Courts look through sham or simulated setups and, where relevant, through alter-ego trusts,” he said.
Put a written agreement in place now, loan, nominee or co-ownership. For property, consult a conveyancer about transferring title to you. Ensure your mother’s will is up to date and specific
— Martin Vermaak, director of Martin Vermaak Attorneys
In one of the firm’s case studies, a man named Sipho bought a flat but registered it in his mother’s name “for safety”. Sipho paid for everything, including the bond. When his mother died without a will, his siblings claimed the property.
“The flat is legally his mother’s because she holds title, it goes into her estate and is shared per intestacy. Sipho can lodge a creditor’s claim for what he funded, but that doesn’t undo registered ownership.”
In another case, a woman named Lerato registered her car in her mother’s name during a divorce. Even though Lerato’s mother’s name was on the papers, Lerato paid for the car and kept it at her house.
“For movables, courts look at the true intention and control, on strong evidence that it was always Lerato’s car, a court can treat it as her asset for the divorce, even though NaTIS lists her mother,” Vermaak said.
For anyone who has already registered assets in a parent’s name, Vermaak advised putting a written agreement in place as soon as possible.
“Put a written agreement in place now, loan, nominee or co-ownership. For property, consult a conveyancer about transferring title to you. Ensure your mother’s will is up to date and specific.”
He added that using a parent’s name is not a proper way to avoid risks in marriage or business. “If the goal was marital risk-management, address it directly. For example, consider a court-approved change of matrimonial property regime under section 21 of the Matrimonial Property Act.
“For property, title wins. For movables, facts matter. ‘Parking’ assets is risky, use proper planning, not shortcuts.”
TimesLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.