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We will be making a loan to an elderly family member, and I have a couple of questions on how taxes are affected. Can we write the loan in such a way that no payments are due until after he dies, when the loan could be repaid out of the estate? I was thinking the interest could just accrue, and we'd pay the taxes on the interest at that point.

Do the tax laws require that I claim the interest annually even though it's not being collected?

We haven't set it up yet, so I thought it's better to ask questions first to see what I should be considering. I've not done this before, so I have no idea what I should be concerned about.

We will have an attorney draw up the promissory note, and I'm sure he will know what should be included, but he's not a tax attorney, and that might make a difference.

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