Tyler Perry, the billionaire actor, producer, and director, shares his experience of setting financial boundaries with family members who constantly asked for money. His tough choice to stop supporting his aunt when she refused to work resonates with many facing similar dilemmas (1).

Financial support within families is common, with 43% of people borrowing money from friends or family in the past year. Gen Z adults, in particular, heavily rely on their parents for financial assistance, highlighting the need for clear boundaries and expectations in such relationships (3, 4).

While lending money to loved ones can strain relationships, setting clear boundaries and expectations can help maintain healthy connections. Saying no when necessary and formalizing agreements through written documents are key steps to protect both parties and prevent misunderstandings in the future (5, 6).

Gifts over $19,000 per person per year can subject the giver to the federal gift tax, making it crucial to plan and formalize any financial assistance within the family. A written document outlining the terms can help navigate potential tax implications and avoid conflicts down the line (7).

Read more at Yahoo Finance: Billionaire Tyler Perry once fired his own aunt. Here’s why he had no choice but to cut his family off financially