Parents need to be careful when lending money to children. Photo / Getty Images

Q: My husband and I are helping our son purchase his first home. He works very hard and has saved some money, but with the current house prices has struggled to save enough to pay the deposit. My husband and I are close to retirement and we have been fortunate enough to build a decent asset base. We will be giving him $200,000 towards the purchase of this first home.

Our son has been in a relationship with his current partner for two years. They are not currently living together but intend to move into the new house together. The house will be in his name only, because she is not contributing to the purchase price. The remainder will be met by bank loan. Are our funds at risk? How we can we protect ourselves?

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