How to struc­ture a loan to a fam­ily mem­ber

The Palm Beach Post - Residences - - Front Page - David W. My­ers

high as 40 per­cent.

When you and your daugh­ter have the ba­sics of the agree­ment worked out, visit an at­tor­ney to pre­pare a de­tailed prom­is­sory note and have it recorded with the county recorder’s of­fice or sim­i­lar agency. If it’s not recorded, your daugh­ter won’t be able to deduct her in­ter­est pay­ments.

You, of course, will need to de­clare the in­ter­est in­come on your fu­ture tax re­turns.

If all of this sounds too com­pli­cated, the well-re­spected Na­tional Fam­ily Mort­gage will do all the work for you. It charges $750 to process in­trafam­ily loans of up to $100,000.

You can get more in­for­ma­tion at www.na­tion­al­fam­i­ly­mort­gage.com or by call­ing the firm at 1-888-636-1990.

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