Estate Planning Pitfall – You haven’t considered IRS rules when making a family loan

Description

Abstract: Lending money to family members can be a great way to help them out without worrying about gift and estate tax liability. But before getting out the checkbook, it’s important to do a little planning to avoid some potentially significant tax pitfalls. This article describes the steps necessary to keep the IRS from considering a loan to be a gift, with the attendant tax consequences.