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What precautions should be taken when lending money to a loved one?

2021-09-03T18:20:10.209Z


OUR ADVICE - When a loved one has financial worries, you spontaneously mobilize to help them. But mixing accounts and affection is not always easy. Precautions are needed to prevent quarrels and avoid the wrath of the tax authorities.


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Doubt stirs up tensions, especially among siblings when parents pay one of the children money without explaining in what capacity they do so. 

"Donation, loan, alimony?

Financial support for a child can take different forms.

We must choose and formalize the chosen option to avoid disputes over the nature of the assistance provided, ”

recommends Christine Valence, wealth engineer at BNP Private Bank.

In order to prove that it is a loan, the civil code also requires a writing as a means of proof (art. 1359).

Without this document specifying in figures and letters the amount loaned, it is in principle futile to go to court.

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However, the law provides for exceptions, especially when it is morally impossible to obtain (art. 1360 of the civil code).

“This targets a very small family circle, in which money relations are taboo.

Apart from the couple and the parents with their children, the judges admit it

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Source: lefigaro

All business articles on 2021-09-03

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