Lending Money to Family Without Losing the Family
A practical guide to keeping private loans clear, fair, and IRS-safe. It covers the handful of things that keep a family loan healthy, in plain English. Read it in one sitting and set yours up the same afternoon.
About a 20-minute read · U.S. Edition · 2026 · Free PDF
The five things you'll walk away knowing
- Put every family loan in writing. It protects the relationship, not just the money.
- Charge at least the IRS Applicable Federal Rate (AFR), or keep the loan under $10,000.
- You can gift up to $19,000 per person in 2026 with no tax and no filing.
- Decide up front what happens if a payment is missed, while everyone is calm.
- Automate tracking, reminders, and payments so you never have to chase.
What's inside
Eleven short chapters, plus an FAQ and a fifteen-minute checklist.
Why a handshake isn't enough
Why writing it down protects the relationship, not just the money.
The six things every family loan needs
The short list that turns a favor into a clear agreement.
A sample one-page agreement
Copy it, fill in the brackets, and both sign. No lawyer required.
How to have the conversation
The words that separate the ask from the relationship.
The IRS, in plain English
AFR, the $10,000 break, and the $19,000 gift exclusion, explained simply.
Setting a fair rate, with a real example
See how a 4% family loan can save a relative $13,000.
Common scenarios
Down payments, tuition, business, medical, debt consolidation.
The mistakes that sink family loans
The avoidable ones we see most often, and how to sidestep them.
Keeping it drama-free after day one
Tracking, reminders, and easy payments so you never have to chase.
When things go wrong
Missed payments, hardship, forgiveness, and estates.
When not to lend
An honest look at the risk, and when a gift is kinder.
Written by the team behind Family Loan Tracker
We've helped families document, structure, and track over $13 million in private loans, from small sibling-to-sibling loans to six-figure down-payment help. This guide collects what we've learned about keeping those loans healthy.
Ready when you are
Grab the guide, then create a free loan agreement and start tracking your loan in minutes. No credit card needed, and a 45-day free trial to see if it fits your family.