What should an IOU record?

Amount, currency, date, who owes whom, purpose/context, due date or review date, and how repayment will occur.

How do I avoid awkward reminders?

Use gentle, predictable reminders rather than surprise messages, and keep tone friendly and factual.

Will my executor see IOUs?

If you choose to share or include them in your executor pack, yes. Clear records help settle estates with less conflict.

If you agree to interest, record the rate and when it applies. For friendly loans, many people choose 0% to keep it simple.

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IOUs in Australia: Track Loans to Friends & Family Without the Drama

Q: Is an IOU a legal contract?

An IOU can support a record of agreement, but legal enforceability depends on circumstances. Seek advice for significant sums.

Published 8 Oct 2025 • General information — Not legal advice

Small loans are part of everyday life — covering a bond, a car repair, or fronting concert tickets. Recording them clearly prevents friction now and confusion later, especially for your executor.

Quick answer (2-minute guide)

Write it down: amount, who owes whom, purpose, due/review date, repayment method.
Choose friendly words: “We’ll review by…” beats threats or ultimatums.
Use gentle reminders: predictable cadence, neutral tone.
Back it up: export a summary for your records or your executor pack.

What to record

Amount & currency (e.g., A$450).
Parties (contact link for each person).
Purpose/context (“Bond top-up for unit move”).
Due or review date (or repayment milestones).
Repayment method (bank transfer, splits, cash).
Notes (receipts, references, attachments).

Wording tips for friendly loans

Keep tone factual and kind: “We agreed I’d cover $X for Y.”
Prefer “review date” to hard deadlines when goodwill matters.
If relevant, state “No interest” to avoid misunderstandings.
Note what happens if plans change: “We’ll re-check in four weeks.”

Reminders that won’t nag

Use a predictable cadence (e.g., monthly) so reminders aren’t surprises. Keep messages short and objective. Pause reminders when repayment is in progress.

Exporting & sharing when needed

For taxes, budgeting or estate administration, export your IOUs. A clear record helps your executor understand which amounts are owed by you vs owed to you.

How LifeVault helps

Add an IOU: record amount, due date, contact and notes.
Set a reminder cadence: gentle nudges without spam.
Attach proofs: photos of receipts or transfers.
Export: share a clean summary if you need outside help.

Frequently asked questions

What should an IOU include?

Amount, who owes whom, purpose/context, due or review date, repayment method and any notes.

Is an IOU a legal contract?

It can support a record of agreement. For significant sums, get legal advice.

How do I remind someone nicely?

Use scheduled, neutral reminders. Keep them short and factual.

Can I export IOUs for my accountant or executor?

Yes — export and share as needed.