Intrafamily Transfer
A parent will sometimes transfer money to a child to enable the child to make an investment that the child could not otherwise make on their own.
For example, the child may have identified an attractive business opportunity but does not have sufficient assets or liquidity with which to make an investment therein, is unwilling or unable to sell other assets to raise the funds, and has not been able to borrow the necessary amount on acceptable terms from an unrelated lender because the market rate of interest may be too high, the repayment schedule may be too short, or the collateral requirements may be difficult to satisfy.Continue Reading “Hey Mom, Can I Have A Few Bucks?” Is It A Loan? A Gift? A Little of Each?