Parent to Child Loan Agreement

Build your Parent to Child Loan Agreement


Lent money to your children? Build a Parent Loan agreement

Lent your child money – perhaps to purchase a house or a car? Maybe you don’t want the money back. Maybe it was a gift. It doesn’t matter. Build a Parent Loan Agreement to protect both you and your child.

How does the Parent Loan Agreement protect you?

With the Loan Agreement, you recover the money if your child:

1. goes bankrupt

2. divorced

3. mentally unsound

For example, your daughter gets married. You loan her $200k to buy a house. You build a Parent Loan Agreement. Ten years later, she divorces. Normally, you lose half of the money. However, with the parent Loan Agreement, you get it all back.

Parent Loan Agreement

Don’t make gifts to children. Make loans. Get it all back if child divorces or goes bankrupt.

Get the money back at any time

You can state how much is loaned, when and how it is repaid, and any interest rate.

For example, you make the loan payable ‘on demand’. You can also start charging interest at any time.

Make the Loan Agreement at any time – it’s not too late

Even if you loaned your child the money years ago, you can still create the Agreement today and be protected.

What do you get?

Press ‘Start Building’ button above to get our:

1. Parent Loan Agreement – ready to sign
2. Law firm’s letter of advice. Press the above “Sample” button to see a sample

Contact us for more legal advice.

You are building your legal document on a law firm’s website. You can telephone us anytime to get legal advice. We can help you answer the questions.

Adjunct Professor, Dr Brett Davies,  CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
Legal Consolidated Barristers & Solicitors
National Australian law firm
Mobile:       04777-96959
Reception: 1800 141 612
Email:         [email protected]
Skype:        brettkennethdavies

1Who is the Borrower?

The Borrower is the entity (human or company) who is going to receive the capital (e.g. money) from the lender.

2Who is the Lender?

The Lender is the entity (human or company) who is passing the capital (e.g. money) to the Borrower.
In this Loan Agreement, the person who is the Lender is lending the money and the person who is the Borrower is the person borrowing the money.

3What do I get?

Why is it better to prepare my legal document on a law firm’s website?
You are dealing directly with a law firm’s website, therefore you:

  1. retain legal professional privilege,
  2. benefit directly from the law firm’s PI insurance
  3. receive legal advice from us.
  4. You are supported by our 100% money back guarantee on every document you build.

How do I build the Parent Loan Agreement?

Answer the questions on our website
Read the Summary page
Lock and Build your document
Type in your Credit Card details
The Loan Agreement, our covering letter and Tax Invoice are emailed to you
Print and sign the Agreement
What do I get?

You will receive an email that contains:

Loan Agreement Document
Our law firm’s letter of advice on our law firm’s letterhead and signed by one of our Partners.

4I don't know how much I'm lending.

Sometimes you don’t know the amount that you are lending. If you don’t know you can leave it as the default answer; “as lent from time to time”. This gives you some wiggle room.

If you do know, but are paying it in instalments, then put it all in as one figure.

Otherwise, just put in the total figure. Remember to put in the dollar sign.

5What if I don't have a payment date?

Sometimes you might not want to set a specific date in the agreement. You can leave it as the default answer; “payable on demand as demanded by the Lender”. This gives you some wiggle room.

If you want it all paid back on the one date, just enter that date in.

Word it how you like. For example

1) “Payable in instalments of 10% per calendar month”

2) “Half to be paid on 21 September 2018, and the remainder to be paid on 21 September 2019”

3) “$100 to be repaid weekly for 10 weeks starting from 4 July 2018”

6What do I put in as the interest rate?

There are five ways you can answer this question depending on how you’d like to do it:

1) If you are charging no interest, put the word “Nil”

2) If you aren’t sure what the interest rate is yet, leave it as the default, which is “as demanded from the lender from time to time”

3) You can put in a flat rate, for example, “5%” (don’t forget to put the % sign in)

4) Keep it variable, for example “2% above the Commonwealth Bank interest rate”.

5) You can also use the inflation rate. You could word it something like “calculated according to the percentage increase in the Consumer Price Index (all groups) for the average of the capital cities of the Commonwealth of Australia (as published from time to time by the Australian Bureau of Statistics or body that takes over that function)”.


Parent to Child Loan Agreement