Lent to Family - Advice needed!

BiltonBabe

Hello

I have I know made one of the biggest mistakes in lending to a family member. My sensible head told me not to do it but my other less sensible head took in all the crying, panic etc etc:cool:

Could anyone point me in the right direction of a form I could download that I could ask them to sign as there is nothing in writing and I want to protect my childrens interests should anything happen to me.

Thankyou

bengalknights

http://www.biztree.com/Templates/Loan-Agreement.html

Something like that maybe?

BiltonBabe

That is just what I was looking for.

Thank you for taking the time to reply. It is much appreciated.

jonesMUFCforever

Have you already lent the money - if so signing now may be too late.

KimYeovil

Grammar nazi alert: 'to family' is not a valid use of 'to lend'. 'Family' can only be given to. Whether or not they subsequently do the right thing...

paddyrg

It's a gift that might be returned as gifts in return. Often family who get themselves into a financial mess don't get better at handling money if bailed out, and so after a while stop paying back. It can break families up very easily if you keep pressing for it, so treat it as an outright gift and anything you get back is a nice bonus!

RichGold

BiltonBabe wrote: »

I want to protect my childrens interests should anything happen to me.

Sounds to me as if the OP has every desire for this money to be returned, and therefore is unable to class it as a gift.

Also sounds as though the very minute it was lent, she regretted it.

BiltonBabe

Thanks for the replies - you are all right - I was regretting it even before I lent it!!

But I feared what would happen if I didn't help when I knew I could (the person involved was distraught and I thought they would do something silly!) they seem to be making all the right noises about paying it back - but obviously will have to see how long it lasts!!

Thanks again.

fozmcfc

BiltonBabe wrote: »

Thanks for the replies - you are all right - I was regretting it even before I lent it!!

But I feared what would happen if I didn't help when I knew I could (the person involved was distraught and I thought they would do something silly!) they seem to be making all the right noises about paying it back - but obviously will have to see how long it lasts!!

Thanks again.

The problem is when people are desperate they say things they don't really mean or know people want to hear.

But once you help get them out of the hole, things don't look so bad to the person you have lent too and they all too often, become only too happy to conveniently forget about it and continue to buy expensive goods and go on holiday etc..

Had it myself, people crying on the phone, help them out, then next thing they are back to buying expensive goods, going on holiday and generally just spending money like water.

Now the very rare times I do, I only give, not lend, giving means accepting it from the off, the money is gone end of.

I still get annoyed with myself, when I then see people I have given the money too, putting themselves back in the same situation. Then it depends on whether you accept a friends who will every few years be in the same situation through their own fault or tell them to get lost.

Despite being taken for a mug several times, it can still be difficult to let go of friendship and even more family members.

I think a lot can depend on whether or not, people can afford to not get the money back.

Rupert_Bear

BiltonBabe wrote: »

Hello

I have I know made one of the biggest mistakes in lending to a family member. My sensible head told me not to do it but my other less sensible head took in all the crying, panic etc etc:cool:

Could anyone point me in the right direction of a form I could download that I could ask them to sign as there is nothing in writing and I want to protect my childrens interests should anything happen to me.

Thankyou

My advice is only lend it knowing you will not get it back despite of any legal documentation. However if you do get it back then treat as a bonus.

barbarawright

Hope it goes well for you but the best thing you can do to help your family member is sit down and go through his/her finances using the advice on this site. Otherwise I fear the cycle will start again...