Lending Money to Family — Without Losing the Family
A calm, practical guide to keeping private loans clear, fair, and IRS-safe. No jargon, no scare tactics — just the handful of things that keep a family loan healthy. 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, 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 — 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 quietly sink family loans
The avoidable ones we see most — 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 — handled well.
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 thousands of families document, structure, and track private loans — from small sibling-to-sibling loans to six-figure down-payment help. This guide distills what actually keeps 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, with a 45-day free trial to see if it fits your family.