By: KATIE MARASCO, ESQ

While so many people are seeing their savings disappear, their jobs lost and their approaching retirement move further and further away they are turning to friends and family for bailouts.  Those that are fortunate enough to still have cash in the bank and plenty of it are faced with a very difficult situation: Whether to give or loan money to these friends and family in need.

One of the biggest considerations is how the relationship will change. Once you become the bank it’s hard to maintain the relationship that previously existed.  For those that think they are able to separate the personal from the business and want to go forward with helping out, the best way might be to make it a true business transaction.  Rather than giving money away, loaning the money with clear up front terms may be the best way to make business stay business.  Of course get it in writing! And have an attorney make sure you are covering your bases, as well as the other party’s bases.  Suggesting they have an attorney look over the deal will keep both parties feeling they are on equal playing fields and will hopefully ward off resentment that often follows in these situations. 

Visit lawinfo to find an attorney in your area and to protect your finances as well as your relationship.