1. can i use my house to be collateral, to do a personal loan from family member?
A: Yes, you can give the family member a promissory note and deed of trust to secure the note to the house.
2. Can my family member enforce the personal loan legal form?
3. If I can't pay for the personal loan, could they really take my house?
A: Yes, if you give them a deed of trust to secure the loan.
4. The family member is only 3 years old (but the legal guardian) will be the one who is going to sign the legal forms, does the 3 years old need to file tax?
A: No. The family member can add the child's interest on the family member's tax return.
5. Does the legal guardian need to pay tax (even though it's not his money)?
6. Can I deduct the personal interested that I will be paying in my tax?
A: Yes, unless the amount of the interest is greater than $100,000. If greater, then you cannot deduct the additional interest amounts.
I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, the website retains your entire payment, and I receive nothing for my efforts in your behalf.
Thanks again for using Justanswer!