Don’t Lend Money Without A Written Loan Agreement
When Being Asked For A Loan
Most senior citizens live on social security and have little to no savings. As the cost of living continues to increase, it becomes more difficult for seniors to live on a fixed income. Children are not always able to financially assist their parents. In fact, it is far more common to have a family member or close friend ask an elder for a loan.
Don’t Lend Money Without Legal Protection
Seniors, especially those who have savings or have access to home equity must protect themselves when they lend money to others, even if it’s a family member or good friend. Too many seniors are taken advantage of and don’t take the necessary precautions to legally protect themselves when lending their money to a loved one. Even if the senior initially chooses to not require repayment of the loan, it is always advisable to have the essential terms of the loan in writing and properly executed. Minds change over time and without having the proper protections right from the beginning, you may be giving up your right to ask for all or some of the money back.
Retaining A Lawyer Can Be Expensive – Especially On A Fixed Income
Loan papers must be properly drafted and using a lawyer to prepare the papers can be expensive. As of 2017, the national average hourly rate for an attorney to draft such a document is over two-hundred dollars an hour. There are ways to avoid retaining a lawyer for such services. One alternative is to use a free ‘do-it-yourself” legal form. There are many resources to choose from.
Here is one alternative you might consider:
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