Can I lend money to my kids without a loan agreement ?
Giving your kids money without a formal loan agreement being in place carries real risks. Verbal agreements, or home-made written agreements with vague or uncertain terms, are unlikely to be enforceable, and in Australia the loan is presumed to be a gift if there is no loan agreement in place.
A formal loan agreement protects you and your kids. It increases the chance that you will get your money back if your child enters family law proceedings or bankruptcy.