Legal & loan disclaimer

Informal, trust-based family arrangements

Family Loan Ledger is designed to help parents and children keep a shared record of an informal, trust-based family loan. Family Loan Ledger does not lend money, transfer funds, verify that money changed hands, establish repayment obligations, create a promissory note or security interest, or make any family arrangement legally enforceable.

Not legal, tax, or financial advice

Balances, interest calculations, reminders, examples, and other information provided by Family Loan Ledger are for organizational and informational purposes only. They are not legal, tax, accounting, investment, or financial advice and should not be treated as a recommendation about whether or how to make a loan.

Your responsibility

Parents and children are solely responsible for deciding the terms of their arrangement, entering accurate records, keeping supporting documents, obtaining any required signatures or disclosures, determining an appropriate interest rate, and complying with applicable laws and tax rules. Family Loan Ledger does not monitor payments, collect debts, resolve disputes, report to credit bureaus, or act as an agent, fiduciary, escrow service, lender, borrower, or mediator.

Tax considerations

Interest-free and below-market family loans can have federal, state, or local tax consequences. The IRS publishes Applicable Federal Rates each month and describes special treatment for certain below-market loans. Review the current IRS Applicable Federal Rates and consult a qualified tax professional for advice about your circumstances.

No guarantee or enforcement

Family Loan Ledger does not guarantee repayment, accuracy, tax treatment, legal validity, collectability, or any outcome between family members. A ledger entry or calculated balance is not proof that a debt is valid or enforceable. Use of Family Loan Ledger is at your own risk, and each family remains responsible for its own decisions and relationship.

Indemnification

To the fullest extent permitted by applicable law, you agree to defend, indemnify, and hold harmless Family Loan Ledger and its owners, operators, affiliates, service providers, officers, employees, and agents from third-party claims, liabilities, damages, judgments, losses, costs, and reasonable legal fees arising from your family loan, your records or instructions, your violation of law or another person's rights, or your misuse of the service. This provision does not apply where indemnification is prohibited by law.

Professional review recommended

About this notice

This page provides important notice about Family Loan Ledger's intended use and limitations. It is not a substitute for a professionally prepared agreement, and adding information to Family Loan Ledger does not create or replace a contract between family members.