Wouldn't a testamentary trust work just as well? I am a older single mum with a 20 year old son who I raised alone from birth, and with no help from anyone. When I die, my son will inherit my whole estate which is valued at well over $1.5 million. To secure his assets, my solicitor suggested this is a way to protect my hard work and his future from gold diggers.

Reply to article

For original story, Click Here.

I actually experience this very same situation in 2003. My father generously gifted me money so that i and my new bride at the time could purchase a house (in 1998). The deed and the mortgage were in our married names. Fast forward a few years and said bride is discovered sleeping with her boss. An extra wrinkle, we sold during that housing explosion of 02 and doubled what the house was paid for. Soon to be ex bride sees dollar signs and expects proceeds to be split 50-50 (we were in a no fault state). Since we did not initially have your suggested loan letter, my father got a lawyer himself and sued us as a couple, claiming this was a gift to me and not us and since us didn't work out, he wanted his money back plus interest.

It actually worked, even though we were in a no fault state, she only received about $15k out of a $600k sale.

Do what he suggests. Create a loan letter between yourself an your offspring only, put it away in a safe and hopefully you never have to use it.

Reply to article

For original story, Click Here.

Testamentary trust is for when your dead. The questioner in this case is giving the money while she's alive and kicking so no a testamentary trust isn't going to work for her

Reply to article

For original story, Click Here.

If you don't want to or can't get a second mortgage on the property because of an issue like bank financing, then putting a Caveat on the property may be better than nothing to help enforce the loan agreement.

Reply to article

For original story, Click Here.

Oops - I'm an idiot! My plan was to protect the assets after I've gone so it is a different scenario.

My son has pre-approval to purchase his first home (Canberra) but I may need to gift him a few dollars to buy something decent. Looks like a loan letter could be something for us to consider now, in order to ward off any future relationship issues. Thanks for the advice.

Reply to article

For original story, Click Here.

love it

Reply to article

For original story, Click Here.

When you gift money to your child and do up a loan document, would centerlink treat it as your asset and reduce your age pension, or will centerlink treat it as a gift out?

Reply to article

For original story, Click Here.