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Dave Says
Dave Ramsey is America's trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. |
When your in-laws want to give you and your wife a very large down payment for a home, hear what Dave Says is the right approach for the agreement. A Very Generous Offer Dear Dave, My in-laws have very generously offered my wife and I $250,000 to help with a down payment on a home. I know the amount exceeds the IRS's yearly gift allowance, but they want to structure it as a family loan and have already told us they don't care if we pay it back. If we accept, we technically owe them a lot of money. If we say no, they may be offended. What do you think about this and how it might impact the relationship? James Dear James, Well, it makes sense your wife would be onboard with the whole thing. It’s her dad making the offer, so of course she would be a lot more comfortable with the idea than you are. This is a big deal, and it’s something you two should have a very serious conversation about. Get on the same page in every regard. Also, I’d recommend making sure you get everything in writing. See to it, as well, that it can be forgiven at the maximum allowable annual gift rate. In addition, in the event of death make sure it’s included in the estate, it’s forgiven, and there will be zero call on the note. In effect, that would make it an advance on your inheritance instead of debt. Under no circumstances should they, or any other heirs, have grounds to call the note. That’s a good question, James. And a nice gift! - Dave |
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