Lending Money to Family? Put it in Writing

Lending money to a family member oftenstarts with trust and good intentions. However, even the closest families canfind themselves in disagreement if expectations are not clearly documented.

One of the most common issues isuncertainty about whether money was intended as a loan or a gift. Circumstancescan change due to financial hardship, relationship breakdowns, or estatedisputes, and without written evidence, misunderstandings can quickly arise.

A family loan agreement helps protectboth the lender and borrower by clearly recording:

• The amount being lent
• Whether interest applies
• Repayment terms
• What happens if repayments     are missed

Many people worry that asking arelative to sign an agreement shows a lack of trust. In reality, it does theopposite. A clear written agreement helps preserve relationships by ensuringeveryone understands their rights and obligations from the outset.

If you are lending money to a child,sibling, parent or other family member, obtaining legal advice and documentingthe arrangement can provide certainty and avoid costly disputes later.

How We Can Help

At Nevin Lenne Gross, we can preparefamily loan agreements tailored to your circumstances, helping to protect bothyour finances and your family relationships.

Need advice about a family loanarrangement? Contact our team today.

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