123 Social security laws recognize that family contracts can be entered into to help the elderly. In general, there are restrictions on the amount of assets that can be granted by a person without reducing the right to the old-age pension or the amount of the old-age pension. “Granny Flat Interest Rules” reduces the effect of these rules. 120 families may be reluctant to consult lawyers with family arrangements before entering into such agreements, believing that lawyers are unnecessary and/or costly. On the contrary, lawyers are more likely to be consulted when relationships are broken. A typical family contract is available for download below. Please note that this document is copyrighted. It was designed by Brian Herd of Carne Reidy Herd Lawyers to illustrate a loan agreement corresponding to the circumstances described in the case study in the Family Agreements section of this guide and therefore uses the names (John, Bev and Bob) used in this example. 114 Such an agreement may be a written document, but it is generally done orally, with limited legal advice, so that there are few details on the terms and without all relevant issues being discussed and agreed upon.
124 It is recommended, but does not require that the existence of a “granny interest” for social security purposes be documented in writing. The requirement for some kind of documentation of such an interest for the purposes of the old-age pension may encourage a person to receive professional advice on such an agreement and offer protection to the elderly in the event of non-compliance with an agreement. 9 20. Cost 20.1 Each party bears its own trial costs in relation to this agreement, but Bev and Bob pay each verified stamp duty. SIGNED AS A DEED SIGNED SEALED AND DELIVERED by ) JEAN) Before me: ) Witness SIGNED SEALED AND DELIVERED by ) BEV ) Before me: Witness SIGNED SEALED AND DELIVERED by ) BOB ) Before me: (). Witness FAMILY ENDORSEMENT Approval of this Agreement by other family members is attached. 9 This online security contract is designed to be used in a wide range of parameters, including: The terms of this agreement will not be suitable for all cases. 125 In its 2007 report entitled “Seniors and Justice,” the House of Representatives Standing Committee on Legal and Constitutional Affairs concluded that family agreements warranted greater formalization and some form of regulation.