Estate Planning Red Flag – You’re lending money to a family member
Abstract: When a family member is in financial need, a natural response may be to make a loan by writing a check. But while an informal approach may feel comfortable, it pays to take steps to formalize the transaction. Why? For one thing, the IRS tends to view undocumented loans as disguised gifts. This brief article explains steps to take to ensure the IRS views the loan as bona fide.