In this low interest rate environment, some financial planners are advising their clients to cut the middleman out entirely with intra-family loans.

That way, "the bank's profit stays in the family," Jonathan Bergman, a financial advisor in Scarsdale, N.Y., says. In most cases, such loans are made to a child from a parent. A parent, confident of a son's or daughter's ability to repay, can make a higher return through an intra-family loan than they often can through stocks or bonds. For the younger generation it means they are able to borrow at a lower interest rate than those offered by a financial institution.

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