My parents were fortunate to retire with a modest amount of wealth, enough to retire, live comfortably, and pass some money onto me and my brother.
My mom wants to buy approximately $40,000 of my high-interest credit card debt, and give me a lower interest rate. I'd pay her directly each month instead of the bank. (Most of this credit debt happened during my divorce.)
It would make a big difference for me to eliminate 22%+ debt and reconsolidate it with her.
However - the government says I can't just get a gift from her without it being heavily taxed.
What legal document do we need to create to formally re-structure this debt so it is not considered a gift?
Thanks!
Submitted April 07, 2021 at 07:52AM by RemyPrice https://ift.tt/2RdQaPs
