@Opus 17 wrote:
....I have never before considered the concept that a cosigner might not be a borrower if the note is not in default. I don’t know how to resolve that question.....
I do know how to resolve it: A co-signer has secondary liability, not primary, and is not a borrower.
Also, with respect to the gift issue, the position, if accepted, that the payments are not a gift would just be an absolutely outstanding way to totally defeat the gift and estate tax (if you stop and think about it).
EX: Multi-Billionaire Bill co-signs a loan in the amount of $5,000,000,000 for his daughter, who is the primary borrower. Bill then proceeds to make payments to his daughter of $20,000,000 per month, free of any and all gift tax.
