From informal handshakes to enforceable legal structures — discover how to support your child's property purchase without risking your retirement, your estate, or your family harmony.
Australia's housing affordability crisis has made parents the unofficial fifth-largest mortgage lender in the country. But without legal structure, that generosity can unravel — in family court, at the bankruptcy administrator's desk, or around the estate table.
The eBook, drawn from Macquarie Group Services' 25+ years of trust law expertise, gives you the complete picture — and the solution.
Courts have held that undocumented parental money is a gift — meaning it enters the child's matrimonial pool in a divorce and may vanish to an ex-partner.
Parents who help one child without documentation often trigger estate battles — with the assisted child's inheritance reduced, or the others claiming unfairness.
If a child faces bankruptcy, an informal loan can be claimed by creditors. In Re Smith (2014), undocumented funds were lost entirely — with no recourse.
Defamation awards of $105,000–$279,000 are now common in Australian courts. Family wealth exposed without trust protection can be reached to satisfy such judgments.
Nineteen chapters covering the landscape, the risks, the legal tools, and the case law — written for parents, advisers, and anyone who helps a family member into the property market.
Why BOMAD has grown to $35B annually, how housing affordability shapes parental decisions, and what the data says about informal versus structured support.
Chapter 1–3A plain-English breakdown of trust mechanics — the Settlor, Trustee, Appointor, Beneficiary, and Protector — and why the BOMAD Trust uses each role to your advantage.
Chapter 4How the MGS BOMAD Trust™ works as a secure “piggy bank” — protecting the child, the parents, and siblings simultaneously through a legally enforceable structure.
Chapter 5–6Asset protection from divorce and bankruptcy, inheritance fairness between siblings, parental control, estate planning integration, and the “set and forget” simplicity of non-income trusts.
Chapter 7From Re Rinehart (2018) to Kennon v Spry (2008) — five cases illustrating exactly what goes wrong without a trust, and how the MGS structure would have protected each family.
Chapter 10 & 13How the BONAP Trust™ extends BOMAD principles to grandparents, and how Succession Trusts deliver inter-generational wealth transfer beyond what any Will can achieve.
Chapter 14–18Professionally established by Macquarie Group Services and delivered within 24 hours. No ongoing tax returns required for interest-free trusts.
Parents create the BOMAD Trust™ with a professionally drafted deed from MGS. The deed outlines beneficiaries, appointor succession, trustee powers, and Lockdown or Non-Lockdown variation. Parents are the initial trustees, appointors, and principal beneficiaries — retaining full control.
MGS drafts & delivers within 24 hoursParents gift funds into the trust via a Deed of Gift. This legally establishes the trust assets as separate from the parents' personal estate — immediately reducing exposure to Family Provisions Act claims and protecting the funds from the parents' creditors.
Deed of Gift included in the packageThe trust lends money to the child through a Deed of Loan. The loan can be interest-free, without fixed repayment dates — yet it remains legally enforceable. In a divorce, it is treated as the child's liability, not a gift. In a bankruptcy, it is a recoverable debt, not a windfall to creditors.
Deed of Loan included in the packageOn the parents' death or earlier resignation, the trustee and appointor roles transfer seamlessly to the child. Existing loans can be incorporated retroactively. The trust operates as a long-term vehicle — securing the family's position across generations.
Seamless succession — no probate requiredThree specialized structures from MGS — each addressing a different inter-generational scenario. All expertly drafted, all delivered within 24 hours.
| Feature | BOMAD Trust™ | BONAP Trust™ | Succession Trust |
|---|---|---|---|
| Who funds it? | Mum & Dad | Nan & Pop | Estate creator |
| Who benefits? | Child (one or more) | Grandchild | Children & grandchildren |
| Parental control retained? | ✓ Yes — initially | ✓ Yes (+ parent layer) | ✓ Lifetime control |
| Divorce protection | ✓ Loan structure protects | ✓ Yes | ✓ Yes |
| Bankruptcy protection | ✓ Loan is recoverable debt | ✓ Yes | ✓ Yes |
| Bloodline protection | ✓ Descendants only | ✓ Yes | ✓ Optional |
| Sibling fairness | ✓ Excluded from estate | ✓ Yes | ✓ Customisable |
| Probate avoidance | ✓ Yes | ✓ Yes | ✓ Yes |
| Ongoing tax returns required? | No (interest-free) | No (interest-free) | If income-generating |
| Package price (incl. GST) | $3,300 | $3,300 | On enquiry |
| Delivery | ✓ 24 hours | ✓ 24 hours | ✓ 24 hours |
The eBook details five cases — real and hypothetical — showing both the risks of going without, and the protection a BOMAD Trust™ delivers.
A family trust where parental contributions to a child's lifestyle were treated as matrimonial assets during a divorce — because they lacked a formal loan structure. The court absorbed funds that the parents believed were protected.
A BOMAD Trust™ with a Deed of Loan would have classified the funds as a debt — outside the matrimonial pool.
Parents provided an undocumented loan to a child for property purchase. Following the parents' death, the loan was contested as a gift in estate proceedings — reducing the estate value and triggering sibling disputes that consumed years in litigation.
Documented terms via a BOMAD Trust™ and Deed of Loan would have resolved the question definitively.
Parents gift $150,000 into a BOMAD Trust™. The trust lends to their daughter under a Deed of Loan. She later divorces — but the loan appears as a liability in the matrimonial balance sheet. The funds are repaid to the trust, not split with the ex-spouse.
Full recovery of parental contribution. Siblings' inheritance unaffected. Trust continues for further support.
Parents lend $80,000 to a son for a business venture — no documentation. The business fails, bankruptcy is declared, and creditors argue the funds were a gift. The parents lose the money. Sibling resentment over unequal treatment follows.
A BOMAD Trust™ loan would have been a provable debt — protected from creditors and excluded from the estate.
Download “The Bank of Mum and Dad in Australia: From Loans to Legacies” — the complete guide to lending wisely, protecting your legacy, and supporting your family with legal certainty.
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Order your BOMAD Trust™ today — or explore the full family of inter-generational trust structures from Macquarie Group Services.
The Bank of Mum and Dad Trust — parents retain control and entitlements initially, passing them to the child on death or earlier. Includes Trust Deed, Deed of Loan, and Deed of Gift. $3,300 incl. GST.
Order Now →The Bank of Nanna and Poppa Trust — the grandparent equivalent of BOMAD. Control vests in grandparents initially with an optional parental layer. Same protections. Same $3,300 incl. GST package.
Order Now →Manage the transfer of wealth from one generation to the next with controls and protections no Will can provide. Assets held by the trustee — not distributed outright — providing certainty through life's risks.
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