Home / Gift or loan
6 questions · ~60 seconds

Gift, loan, or a bit of both?

Answer six quick questions about money you're giving a family member or friend. We'll tell you which one fits — and exactly what to do next.

Question 1 of 60%
Your result

Gift

Why this fits

    What to do next

      Create a family loan agreement
      Free to draft · both sign on their phones in ~4 minutes

      The three outcomes, plainly

      Gift

      No repayment expected, and you're genuinely at peace if it's never returned. Cleanest when amounts are small and a dispute is unlikely.

      Loan

      You expect to be repaid, the amount is meaningful, or a divorce, estate, or business issue could surface. Put it in writing.

      Hybrid

      Repay-if-you-can, forgivable, or part-gift-part-loan. Fits unclear or conditional expectations — and still belongs in writing.

      Why write anything down for family?

      Because the most common cause of a family money fallout isn't bad faith — it's two people honestly remembering the same handover differently. A short, signed record fixes that. It also matters for taxes, estates, and divorce, where an undocumented transfer can be treated very differently from what you intended. Even a gift is worth a one-line note confirming it was a gift.

      This tool gives general information to help you think it through — it isn't legal, tax, or financial advice. For your specific situation, a licensed professional in your province is the right call.