Legal Question in Credit and Debt Law in Missouri

Re: A Reverse Promissory Note?

There's no form that I know of. Not to worry, though. Just write him a note stating your intention to make the gift. What makes a transaction a gift is the intention of the donor. Hard evidence of that intention is your letter to that effect.

Kudos on your good deed.

Tom

Re: A Reverse Promissory Note?

First of all, Jim, you sound like a very nice person and a good friend. Most lawyers seldom see legal questions like yours, and it is a very welcome relief! Another attorney posted a reply which is true in part. In Missouri, all it takes to make a gift is your stated intent to make the gift and delivery of the gift. However, to answer your question, if you or your friend would feel better with a document, it would be easy enough to prepare a "Gift Affidavit". The Missouri Department of Revenue (Driver's License Bureau's) have a form that people use for cars. The form is free, and you could modify it to refer to the cash gift which you have made. Then you could sign the "Gift Affidavit" in front of a notary public and give it to your friend. By the way, this is not meant as tax advice, but did you know that there is such a thing as a "Gift Tax"? Yes, the government puts restrictions on the amount a person may give away to any other person in a single year without paying taxes. Historically the limit was $10,000, but I believe that it is up to $11,000 this year and will go higher than that in the future. You may want to get tax advice from an expert before documenting your gift in order to avoid unintended consequences.