Technically a loan requires even more paperwork, I think? And you have to charge interest, even if you then forgive it (which also counts as a gift) you are required to first go through the motions. https://www.schwab.com/learn/story/family-loans-should-you-l...
Yes, I misspoke when I said "there is no paperwork". The difference is that the loan paperwork does not have to be filed with the IRS, whereas a 709 does.
These laws fundamentally exist to constrain how much wealth can be passed down outside of estate tax, which is the main concern of the article you have linked. If you don't quite cross all of the t's when giving a loan to an older family member (which is the complete opposite of trying to push wealth forwards in time), it's unlikely the IRS is going to be too concerned.
These laws fundamentally exist to constrain how much wealth can be passed down outside of estate tax, which is the main concern of the article you have linked. If you don't quite cross all of the t's when giving a loan to an older family member (which is the complete opposite of trying to push wealth forwards in time), it's unlikely the IRS is going to be too concerned.