Should money I give family be a gift or a loan?

It depends on whether you expect to be repaid and how much a future dispute would hurt. If you are genuinely fine never seeing the money again and there is little chance of a dispute, a gift is cleanest. If you expect repayment, the amount is significant, or a divorce, estate, or business issue could arise, put it in a written loan agreement. When expectations are unclear or conditional, a hybrid — documented in writing — usually fits best.

Home / Gift or loan

6 questions · ~60 seconds

Gift, loan, or a bit of both?

Q: Why write anything down for family?

Writing it down protects the relationship, not just the money. A short signed record removes the most common cause of family fallout: two people remembering the same handover differently. It also matters for taxes, estates, and divorce, where an undocumented transfer can be treated very differently from what you intended.

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.

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

Email me this result

Get your answer and a short checklist sent over — handy if you want to talk it through with the other person first.

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.

About this page

Who runs this: LendRight is a product of RULE8 Inc.

Last reviewed: July 3, 2026 by the LendRight Editorial Team.

Sources: Criminal Code s. 347 (35% APR criminal interest cap); provincial limitation and electronic-commerce legislation (varies by province); CRA prescribed rate (3% for 2026).

Scope: self-help document automation for ordinary personal loans between individuals — not legal or tax advice, and no lawyer-client relationship is created. Quebec is not yet supported. Get a lawyer for secured or business loans, separations, estates, or disputed intentions.

Electronic signing: e-signatures are recognized for ordinary contracts across supported provinces; each agreement is a locked PDF with a tamper-evident certificate of signers and timestamps. A signed agreement is strong evidence — enforceability always depends on the facts of the loan.

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.