Posts Tagged ‘Family Loan’


3 Reasons Many Family Loans Turn into Grants

Have you made a loan to a child or grandchild?

When making a loan, you have an expectation of getting paid back.  When a family loan turns into a grant, you’re not going to get paid back. Here are 3 reasons a family loan may turn into a grant.


3 Easy Ways to Financially Help Your Children or Grandchildren

Do your children or grandchildren need some financial assistance?

Here are 3 Easy Ways to help them:

 

1) Make a Loan

Parents and grandparents can loan to their child or grandchild.  If this is the approach taken, a formal loan agreement should be drawn up.  This should include interest and the repayment terms.  The Internal Revenue Service (“IRS”) will require a minimum amount of interest to be charged.  This is known as the Applicable Federal Rate (“AFR”).  This … Continue reading »