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  • So then is your goal to loan her money interest-free and tax-free, but you want a legally-binding secured loan (use the home/equity as collateral in case of non-repayment)? Is all that correct? Commented Jan 28, 2017 at 17:03
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    Related: What are the pitfalls of loaning money to friends or family? Is there a right way to do it? Commented Jan 28, 2017 at 18:21
  • Daniel - The goal is to make the loan in a way that it is tax-free to them (no gift tax) and legally-binding is a minor issue. I had seen some advice that suggested a home equity type loan would be a good idea. I would rather it be interest free but if I had to chart the AFR I would. Commented Jan 28, 2017 at 18:31
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    Gift tax is assessed on the donor, not the recipient. Commented Jan 28, 2017 at 21:06
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    There is a minimum rate that you must charge. It's tiny, but you have to charge it. Consult a tax lawyer. Commented Jan 29, 2017 at 1:03