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 IRSs yearly gift allowance, but they want to structure it as a family loan and have already told us they dont 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?


Dear James,

Well, it makes sense your wife would be onboard with the whole thing. Its 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 its something you two should have a very serious conversation about. Get on the same page in every regard. Also, Id 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 its included in the estate, its 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.

Thats a good question, James. And a nice gift!


Keeping the Side Hustle Alive

Dear Dave,

I have a full-time job, but I also have a side job providing firewood to help pay off debt. I make $600 to $1,000 a month with this project. My log splitter went down recently when a hydraulic line burst, and the machine caught on fire. Im not sure how much it will cost to get it going again. Should I invest in a new one that will increase my productivity and help me pay off debt faster?


Dear Chris,

If Im in your shoes, Im going to fix the old one. Even it means duct tape and glue, Im going to try to find a way to repair it instead of spending a bunch of money or going deeper into debt.

If you cant do that at a reasonable price out of pocket, Id be in the market for a decent, used log splitter. And pay cash! I get your line of thinking wheRead More – Source