Perhaps, heck...PROBABLY, but I was trying to clarify exactly what the OP was incorrect about. You covered the possibilities nicely.The federal gift tax, perhaps?
These types of arrangements often backfire. Besides, somebody's nature isn't going to change for the better just because you handed them a big check.
You can elaborate more. You just choose not to. I don't really care why, but intentionally leaving out relevant information makes it difficult for folks to provide helpful feedback. In any event, and based only on the limited info provided, you could put a term into a written agreement that says any amounts remaining unpaid at the time of your death will be automatically forgiven. However, I'm getting the sense that the enforceability of this intended loan agreement is not terribly high on your list of concerns.
In my youth I had sold cars and motorcycles to people who has promised faithfully to make payments.
But if you don't demand the repayment within 366 days you may be SOL.
1 and 4 are correct. I'll leave it to others to address the tax issues in 2 and 3.
That's not correct. The case that the OP quoted on the first page of the thread indicates that his/her state's courts interpret the one year statute of frauds consistent with every other state of which I'm aware: if it is at all possible for the agreement to be performed within one year of it's making, it is not unenforceable if it is not memorialized by a signed writing. What actually happens isn't relevant to this issue.
So if I get a #500K loan it doesn't have to be memorialized because I could, in theory, pay it back in a year?
2, 3 and 4 are correct. I am not sure about 1.
No, that is NOT correct. It is a gift. However, a person who is giving a gift to his/her citizen spouse is entitled to a deduction against gift tax for the gifts of a present interest made to the spouse. The result is that for these gifts there is no federal gift tax regardless of the amount of the gift and for that reason the IRS does not require reporting of these gifts. However, certain gifts of a future interest or terminable interest to a spouse, as well as some gifts to noncitizen spouses, must be reported on the gift tax return and could result in gift tax. See the Form 709 instructions starting at the bottom of page 7.
For loans between spouses no interest will be imputed on a below market loan. However, if there is interest charged and collected on the loan that interest earned would be included as taxable income on the return. In most cases, of course, you'd not want to do that unless the spouse is also entitled to a deduction for that interest payment (e.g. a loan for the spouse's business). Most gifts between spouses do not result in any gift tax consequences and need not be reported, but see my earlier reply that addresses gifts between spouses.
If those are the only gifts made to that person during the year then you are correct.
Correct. I can't say I've done exhaustive analysis of the statute of frauds under every state's law, but the case law I have read is unanimous that an agreement to pay money (regardless of the amount) is never subject to the one-year SOF (unless the agreement expressly prohibits full performance in less than a year, which would be really odd).