How to Keep the “Bank of Mum and Dad” Fair

With first-home buyers re-entering the market and lending conditions easing, more parents are stepping in to help their children secure a home or start a business. While this support can be life-changing, it can also create tension if expectations aren’t clear from the beginning.

In a new Op Ed published in The Post, Director Andrew Clements explores a challenge he sees often in his private wealth work: families offering support quickly and informally, without discussing whether that help is a loan, a gift, or an advance on an inheritance.

These arrangements almost always start from generosity but without clarity, misunderstandings can surface years later, particularly when wills and estates are being finalised. As Andrew explains, “Most parents don’t realise it at the time, but they’re effectively running a family bank, and the tension isn’t created by the money itself, but by the assumptions that grow around it.”

The article offers practical guidance on how families can avoid conflict by putting simple structures around financial support. Clear documentation, open communication, and aligned expectations help protect relationships over the long term.

You can read Andrew’s full Op Ed here:
https://www.thepost.co.nz/nz-news/360893378/bank-mum-and-dad-back-business-how-keep-it-fair

If you or your family are considering intergenerational support or planning ahead for succession, our Private Wealth team can help you find the right structure for your situation. Get in touch with us.