Considering lending your children money?

If you are lending money to your child and/or your child and their partner, you should ensure you have measures in place to protect your financial contribution.

A formal Loan Agreement ensures that if you are lending money to your child and/or your child and their partner, you have a formalised agreement that sets out the terms and that also provides an option for you to recover the money lent should their situation change, particularly if, at a later stage, the property or other asset needs to be sold.

A Loan Agreement sets out the terms and intended purpose of the loan, including:

• The Loan Amount

• Any security interests, such as a caveat or second mortgage over the property

• Repayment terms, if applicable

• Interest rate, if applicable

• Obligations of all parties

Lending money without a formal Loan Agreement can expose you to unnecessary risk. If you need guidance, contact MCW Lawyers to discuss your situation and make an appointment. Our team combines trusted legal expertise with genuine care, working closely with you to understand your circumstances and prepare a formal Loan Agreement that protects your financial contribution and is tailored to your needs.