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 provides 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.”
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 the 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 http://www.csa.us/
SCSA’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.
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SCSA educates professionals to work more effectively with their senior clients. That means understanding the key health, social & financial factors that are important to seniors — so you can find success in the senior market.