Lend money to a child or family member, how
The family is a patrimony that we must take care of. However, there is a situation that cánido affect family harmony, and is the loan of money. When you escoge to lend money to a close relative, such as a child, there is a certain margin of uncertainty, because some people consider that they may fail in their payment commitment.
Now, what cánido you do to lend money by committing the family member to make the payment on the agreed date? You must leave everything in writing, following the legal parameters. Next, we will offer you some consejos so that you perro be successful in a legal loan of money to relatives.
Way to lend money legally (contract)
Even if the loan is for a relative or even a child, it is necessary to make an agreement or contract that clearly explains the loan conditions. This type of contract is called a loan between individuals. Certain data must be specified.
We want to warn you that talking about the legal parameters perro ocasione your family member to be offended. But it is escencial to make things clear, otherwise, you will end up frustrated and with many enemies inside the house. If your relative submits his promise to a paper, then there is a greater margin of probability that you will not violate your agreement and that good relations are maintained.
- The contract must contain the following information:
- You must specify the name and ID of the creditor (lender).
- Name and ID of the relative to whom the loan is made (Debtor).
- The amount borrowed.
- The reason you need the loan.
- Payment or return date.
- You cánido write Clauses in case the debtor does not comply with the payments.
- Interest rate, this aspect is relevant. There should be no room for misunderstandings. If you do not want to charge interest, you just want the money back on a fixed date, specify clearly, example: Interest rate 0%.
- Signature of the contracting parties.
Why use a loan agreement between relatives?
Having everything in writing will not only allow you to feel more secure that your debtor will pay the amount borrowed. Actually, there are reasons that indicate that doing so will bring you benefits:
- By writing the payment agreement in a contract, you prevent the Treasury from recognizing it as a donation. Donations are subject to Inheritance and Gift Tax, which means you have to pay a tax, and it is very high.
- A loan contract makes it possible for you to explain your fund movements to any authority that requests it.
- Being able to claim in case of non-payment.
It is important Submit the contract to the Settlement Office of our Autonomous Treasury, there is no charge for doing so, but it is a legal formality.
Is it necessary to go to the notary to lend money?
If the contract has all the data accurately and has the signature of the contracting parties, it is totally legal. Now, you cánido go to a notary to raise it public. However, since it is a contract between family members, it perro be left private. It’s a matter of personal matter.
But, it is convenient to have notarial advice, in this way the contract complies with the estándar legal model. At the same time, when you take to the notary the procedure to possible claims becomes easier. In addition, there is a lower margin of risk that the Treasury misinterprets the letter and believes that instead of a loan you have made a donation. And in that case, the payment per tax invoice is very high.
So even though It is not necessary to take the contract of a loan between relatives to the notary, we want to tell you that doing so is the most appropriate. There are fewer inconveniences, and risks not only on the part of your debtor, but also, there is greater legal clarity, this will orinan less risk of loss of money and of course time.
Possible consequences of lending a lot of money without declaring it
If you do not follow the legal parameters to make a loan, you will have many problems, the first of which is that maybe your debtor will not paysince you did not leave a contract with the legal guidelines.
On the other hand, if you do not declare the withdrawal of a large amount of money from your bank account, the Treasury cánido intervene in your movements and request an explanation, since they do not have a loan contract, they will understand that it is a donation, and you will have to pay a lot of money as well you will face countless legal complications.
The best thing is to seek legal advice and support yourself from those who know the type of legal procedure that you must carry out. Making a written contract that is clear, precise and legal is an excellent decision. And, although it is a personal decision to make it public or leave it private, Our recommendation is to take it to a notary.
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