About the Course
Introduction
This CPE webinar will examine the income, gift, and estate tax considerations associated with intrafamily loans and promissory notes and provide guidance on structuring these arrangements to withstand IRS scrutiny.
Description
Intrafamily loans remain a powerful, flexible estate planning vehicle for transferring assets to family members. Properly structured loans can transfer wealth at minimal tax cost, particularly when investment returns exceed the Applicable Federal Rate (AFR). Charging the appropriate AFR alone may not be sufficient if the transaction lacks the characteristics of a genuine debtor-creditor relationship. Deficiencies in note drafting, repayment provisions, recordkeeping, or loan administration can undermine the intended tax benefits and invite IRS scrutiny. Transactions that lack sufficient evidence of a genuine expectation of repayment could be recharacterized as taxable gifts.
Additional challenges arise when loans involve trusts, intentionally defective grantor trusts (IDGTs), family entities, demand notes, refinancing arrangements, or subsequent loan forgiveness. Trust and estates advisers must understand the requirements of a bona fide loan and best documentation practices to reduce exposure to an IRS challenge.
Listen as our knowledgeable panel of trusts and estates professionals discusses the opportunities and risks associated with intrafamily lending as well as recent developments and rulings related to family loans and promissory notes.
Presented By
Mr. Meek is a partner in MendenFreiman's business law, tax planning, and estate planning practice areas. He provides comprehensive legal counsel on business, tax, and estate planning matters to high-net-worth individuals and families, as well as privately held businesses. A solutions-oriented, pragmatic, and collaborative counselor with strong business and financial acumen, experience advising families and business leaders on wealth and business planning issues, and aptitude in balancing risk exposure against strategic goals, Mr. Meek has represented businesses and business owners with the design and implementation of comprehensive business plans that integrate succession, tax minimization, and asset protection techniques. He applies his knowledge and expertise to develop customized strategies that help clients achieve their long-term business, financial, and estate planning objectives. Throughout his career, Mr. Meek has worked on numerous high-net-worth, developing comprehensive estate, tax, wealth transfer, and business succession plans and managing formation and implementation processes for defective grantor trusts and other forms of dynastic trusts, estate freeze transactions, and charitable trusts and foundations.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Thursday, December 10, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Overview of intrafamily loans
II. AFR requirements and Section 7872
III. Bona fide loan requirements
IV. Structuring the promissory note
V. Other issues
A. Loan forgiveness
B. Loans with trusts
C. Loans with a closely held company
D. Other considerations
VI. Lessons learned from recent cases
VII. Best practices for surviving IRS examination
The panel will review these and other key issues:
- Current AFR requirements and the application of IRC Section 7872 to intrafamily loans
- Distinguishing bona fide loans from taxable gifts
- Key factors considered by the IRS and courts in evaluating family lending arrangements
- Demand loans versus term loans and common restructuring issues
- Loans involving trusts, IDGTs, beneficiaries, and family entities
Learning Objectives
After completing this program you will be able to:
- Identify the requirements necessary for an intrafamily loan to be respected for federal tax purposes
- Recognize factors used by the IRS and courts to distinguish loans from gifts
- Apply AFR and promissory note rules when structuring family lending transactions
- Evaluate planning opportunities and risks associated with intrafamily loans
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
Related Courses
Intrafamily Loans and Promissory Notes: Structuring, AFR Considerations, and Bona Fide Loan Requirements
Thursday, December 10, 2026
1:00 PM ET/10:00 AM PT
Intentionally Defective Grantor Trusts: Asset Transfer Planning Strategies and Form 1041 Reporting Compliance
Monday, December 7, 2026
1:00 PM ET/10:00 AM PT
