Have to lend a family member a large amount of $ for emergency...

[KingGheedora]

Tax wise is there anything I need to consider? And what's the best way to transfer the money over to them? Someone suggested cashier's check via certified mail. The amount is a few thousand.

 

[compuwiz1]

Wire transfer, or direct deposit into a major bank, if they have an account there.

Just be sure to send a note informing them, that it's a loan, or gift. Keep a receipt for your records.

If so and so has an account, at US Bank, Wells Fargo, or Bank of America, you can walk into such a branch near you, and put the money into their account, if you have the account number. Just confirm that it is that person's account.

 

[FoBoT]

Originally posted by: KingGheedora
The amount is a few thousand.

no problems with that amount, you can "gift" it to them and they can "gift" it back to you

 

[her209]

Its tax free up to a certain amount.

 

[radioouman]

Become FDIC insured and make them a loan! :laugh:

Just kidding. You can wire it to them (Western Union), you could use Paypal if you both have it, although there will be some fees, or even Google Checkout.
Cashier's check is a good way to do it too.

 

[d3n]

Originally posted by: her209
Its tax free up to a certain amount.

I think its at 12k now. You'll need to check that.

 

[hjo3]

BTW, if you don't think it'll insult them, get a promisory note.

 

[BoomerD]

Have to lend a family member a large amount of $ for emergency...Best way to do it?

The BEST way is to send them to a bank or other financial institution. Money lent can tear a family apart. Of course, refusing to do it can create a pretty big rift as well, so you're in a tight spot.

Originally posted by: hjo3
BTW, if you don't think it'll insult them, get a promisory note.

Fvck whether it insults them or not...IMO, you NEED some documentation, just to cover your ass. Imagine having to take them to Judge Joe Brown or Judge Judy and not having any signed paperwork...

 

[waggy]

Originally posted by: hjo3
BTW, if you don't think it'll insult them, get a promisory note.

who cares if it insults them? GET A NOTE.

 

[Pantoot]

If you are lending money to a family member consider it a gift, don't expect repayment. Be happy and surprised if they ever pay you back. If you go into it expecting repayment you will only get disappointed.

What would you do with a note - sue? If lending the money causes a hardship that you aren't willing to endure point them to a bank.

All of this assumes you actually like your family member and wish to continue having what I presume is a good relationship.

[Edit: and to answer your question, a cashier's check would be best, if it is under 5k their bank cannot place an extended hold on the funds when they go to deposit your loan]

 

[D1gger]

Originally posted by: Pantoot
If you are lending money to a family member consider it a gift, don't expect repayment. Be happy and surprised if they ever pay you back. If you go into it expecting repayment you will only get disappointed.

What would you do with a note - sue? If lending the money causes a hardship that you aren't willing to endure point them to a bank.

All of this assumes you actually like your family member and wish to continue having what I presume is a good relationship.

[Edit: and to answer your question, a cashier's check would be best, if it is under 5k their bank cannot place an extended hold on the funds when they go to deposit your loan]

:thumbsup:

I went through exactly this situation with my wife's brother. He needed some cash to make it through his last year of university and asked us to help out. I like the guy and had no problem "loaning" him the money. I never expected to see it again. My wife on the other hand griped about it for years. He never did pay it back, but since I always viewed it as a gift it hasn't bothered me.

 

[Ramma2]

The best way is to not. More often than not it ends up hurting the relationship some how, and you'll be out money.

 

[Chryso]

The best way is to think of it as a gift and don't expect to see it again.

 

[yowolabi]

Originally posted by: compuwiz1
Wire transfer, or direct deposit into a major bank, if they have an account there.

Just be sure to send a note informing them, that it's a loan, or gift. Keep a receipt for your records.

If so and so has an account, at US Bank, Wells Fargo, or Bank of America, you can walk into such a branch near you, and put the money into their account, if you have the account number. Just confirm that it is that person's account.

Isn't that stuff only useful if you're planning on suing this person later? I will never sue a family member, so I just write a check or give cash.

Also, I ask the family member when they will be paying it back. If they say a specific date in the near future when they're sure they'll have it, no problem. If they're not sure when they'll have the money, I only give the maximum amount I can afford to never see again.