What If I Use My Inheritance Money To Purchase A Property Or If I Inherit A Property?
To keep your inheritance money separate, the key is to ensure your money has not been “intermingled”.

To keep your inheritance money separate, the key is to
ensure your money has not been “intermingled”. Recent case law provides, where inherited
funds are used to purchase a property, provided there is no actual “intermingling”
of that property with relationship property, such inheritances will remain
separate property - but there needs to be more than just an intention or plan
to do so. This applies, even if the
property is purchased in both partners’ names and regardless of whether inheritance
money was used to fund the purchase.
The same principle applies, where a person inherits a property. Provided it has not been “intermingled” with relationship property, it will remain that partner’s separate property. Note - if there has been any increase in the value of separate property, attributable to the application of relationship property, then that increase will be considered relationship property. This situation is subject to whether or not a previous contracting out or pre-nuptial agreement has been entered into between the parties, stating otherwise.

