Financial
Family Loan Agreement
Informal lending arrangement between family members establishing loan terms, interest rates, repayment schedules, and tax considerations for personal financial assistance within families.
Key Clauses
1
Loan Amount
States the principal sum being lent between family members.
2
Interest Terms
Specifies interest rate or states the loan is interest-free, addressing IRS minimum rates.
3
Repayment Schedule
Establishes payment amounts, frequency, and maturity date.
4
Tax Considerations
Acknowledges gift tax implications and IRS applicable federal rate requirements.
5
Forgiveness Provisions
Addresses conditions under which all or part of the loan may be forgiven.
Use This Template
When You Need This
- Lending money to a family member for a home purchase or business startup
- Formalizing family loans to satisfy IRS documentation requirements
- Protecting family relationships by clearly documenting financial arrangements
- Structuring a below-market loan while addressing gift tax implications