Bank of Nan and Pop Trusts

Help Your Grandchild Buy a Home with a BONAP Trust™

At Macquarie Group Services, we know that as grandparents (Nans and Pops), you want to give your grandchildren a strong start in life. A BONAP Trust™, or Bank of Nan and Pop Trust, is a secure way to provide funds for your grandchildren's property or other goals, with their parents able to play a key role in managing the support. This plan ensures your generosity is protected and shared across generations, creating a lasting family bond.

What Makes a BONAP Trust™ special?

A BONAP Trust™ allows you to place funds into a safe structure to help your grandchildren purchase property. Like a BOMAD Trust™, which helps parents support a child directly, a BONAP Trust™ adds an extra layer: after you pass, control moves to their parents as appointors and principal beneficiaries before the funds reach your grandchildren. This gives you confidence that your gift will be handled with care by those you trust.

Control of the Trust

Why choose a BONAP Trust™

Launch Grandchildren's Opportunities: Provide for a first home purchase, investment, or any other financial goal, with your children able to take over managing it when you pass away.
Keep Your Wealth Safe: Shield your assets from a grandchild's financial setbacks or future spouse claims, ensuring your gift stays in the family.
Strengthen Family Ties: Involve your children in the process, minimizing the risk of family misunderstandings.
Build for the Future: Create a plan that adapts as your family grows, supporting your grandchildren's next steps.

More than just helping with a deposit - BONAP Trust™ VS Direct Help

Unlike giving money straight to your grandchildren, a BONAP Trust™:

Involves your children

as a managing layer, overseeing funds before they reach your grandchild

Shields your gift

from a grandchild's debts, divorce, creditor claim and even Family Provisions Act claims

Prevents family tension

By giving your grandchild and their parents, clear roles which avoids confusion and potential conflicts after you're gone

Keeps your support ready

to use when your grandchild needs it, unlike delayed or informal handouts or direct gifts

Provides legal protection

unlike direct assistance which risks being lost or disputed in a range of different circumstances

Direct assistance might vanish due to unforeseen problems, while a BONAP Trust™ keeps your gift safe and structured.

How does it work?

Once a BONAP Trust™ is established, grandparents gift funds to the trust, which then lends the amount to the grandchild, either interest-free or with interest.

A formal deed of loan protects the funds from claims in cases of divorce, bankruptcy, or other risks.

Initially, grandparents control the trust as trustees and appointors. Upon their passing or resignation, control typically transfers to the grandchild's parents or the grandchild, based on your chosen setup.

Our comprehensive Bank of Nan and Pop Package

We make it easy, guiding you through the process to tailor the trust for your family's needs.For just $3,300 (incl. GST), Macquarie Group Services offers everything you need to set up a BONAP Trust™:

Trust Deed

Establishes the legal framework of the trust, defining its rules, beneficiaries, and controls of trustees and appointors. This document ensures the funds are managed according to your wishes, keeping them separate from your estate to avoid disputes among heirs

Deed of Loan

Formalizes the loan to the child, with flexible terms like optional interest and repayment dates. It protects funds from risks such as divorce or bankruptcy, ensuring clarity and preventing courts from treating the money as a gift

Deed of Gift

Records the funds gifted to the trust, safeguarding them from your estate and potential claims. This step is crucial for maintaining fairness across your family's inheritances

Features of a BONAP Trust™

Incorporating Existing Loans into a BONAP Trust™

Learn more about a BONAP Trust™

For even more in-depth information about a BONAP Trust™, we have put together a range of materials. Check out our full brochure and BONAP Trust™ Factsheet. For a limited time we’re also making our comprehensive eBook "The Bank of Mum and Dad in Australia: From Loans to Legacies" free to download. For video content, our YouTube Channel is regularly updated with new explainers, interviews, webinars and more. To speak to someone about how a BONAP Trust™ could be used in your situation, call or email us today.

Learn the basics of our BONAP Trust™. This brochure covers how they work, the features you can choose from and why you should consider one.

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Discover our BONAP Trust™ Package which contains not only the Trust, but all other documentation you need to facilitate your financial support.

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We have put together a comprehensive guide to the Bank of Mum and Dad. Our book contains all the important information you need to know before helping your kids or grandkids.

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Your Questions Answered

Why should I choose the BONAP Trust™ package?

Our $3,300 package (Trust Deed, Loan Agreement, Deed of Gift) ensures your money is protected and our documents have been designed to work together seamlessly.

Is a BONAP Trust™ hard to set up?

Not at all! You just pick the option that suit your needs and situation best. We've made it as easy as possible to get started and our package provides everything you need.

Can I include a loan I already gave my grandchild?

Yes, we can move existing loans into the trust, so you can protect those funds and receive all the other benefits of a BONAP Trust™

How does bloodline protection work?

It ensures only your direct family descendants, not your grandchild's spouse, can benefit, protecting the money from divorce or claims.

What happens after we pass away?

Control passes to the grandchild's parents or the grandchild, based on your chosen setup, keeping the trust on track.

I want to gift the money to my grandchild, why use a loan agreement?

Structuring the gift as a loan provides documentation to protect funds from divorce or bankruptcy. It can be interest-free with no repayments, and the grandchild can forgive the loan upon gaining control, aligning with your gift intention.