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Document the transaction.... Posted by MI-Roger [Email] ![]() ![]() In Reply to: ? about lending money to my mother, ChrisB, Wed, 7 Jun 2006 10:45:09 Members do not see ads below this line. - Help Keep This Site Online - Signup |
It sounds like you will be providing your Mom with what is known as a "Bridge Loan" to bridge the time/funds necessary between buying and selling residences. I would recommend documenting the loan, as a minimum, with a Promissory Note detailing re-payment terms (dollar amount, length or time, interest (if any), payment schedule), and with competitive quotes from Banks/Financial Companies offering Bridge Loans.
If either your Mom or you are audited by the IRS they may view the loan terms as a gift. Being able to prove the value of this "gift" was less than the allowable tax-free maximum will be a big help.
If either party dies before repayment is complete (bad things happen sometimes), the Promissory Note should answer questons during settlement of the estate.
posted by 198.208.15...
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
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