Lending money to family members can be very risky, and such a decision should always be made with caution.
(PRWEB) April 17, 2012
The Society of Certified Senior Advisor’s has released a new article about the dangers associated with loaning money to family. Parents who are often seniors are faced with a tough decision when an adult child asks for a loan. A parent’s natural instinct is to help their child, but seniors must be especially careful when deciding to lend money. In the event the loan is not repaid a senior is often less able to recoup the money than someone who is still in their working years, and seniors may need the money to survive in the event an unexpected health or long-term living expense arises.
Lending money to family members can be very risky, and such a decision should always be made with caution. Loans amongst family can bring about many complicated issues. Relationships may be compromised as a direct result of the loan, and the lender risks their own financial security in the event the loan is not repaid. The Society of Certified Senior Advisors has released the article “The Dangers of Personal Loans and Family” to caution seniors and their families about loaning money, and provide valuable information so that an educated and informed decision can be made.
Excerpts from this article:
“A parent should thoroughly consider giving money to an adult child. Enlisting an attorney or an accountant may be necessary to assure proper structuring of the loan and payments. The Internal Revenue Service (IRS) may also be curious as to the nature of the arrangement, another reason to have a professional help set up the loan.”
“A 2009 CNN Money survey found that 43 percent of its readers who lend money to family or friends were not paid back in full and 27 percent hadn’t received any money back.”
Find out more by reading the full article at The Dangers of Personal Loans and Family.
This article contains information about the risks associated with lending money to family, serves as a resource for how to reduce these risks and provides readers with the questions they need to ask in order to make the best decision for both themself and their family.
The Society of Certified Senior Advisors provides free resources and tools for our members as an ongoing commitment that we have in helping professionals to understand the complex and dynamic lives of modern senior citizens. SCSA has a suite of information including educational webinars, white papers, articles and more! Find out about all the resources SCSA has to offer at Free Resources.
The Society of Certified Senior Advisor's mission is to educate professionals to work more effectively with their senior clients. For those who work with seniors, this means understanding the key health, social and financial factors that are important to seniors—and how these factors work together.