Documentation when borrowing private money from family

[George Dale]

What documentation do I need to consider when borrowing long term private money from family (30 year amort/10 year balloon)?  I am working with a close family member on a loan.  There were be no lien's on the property to secure the loan.  They have 2 concerns that I need help making them feel comfortable with the process:

How does the money they transfer to me not get flagged as a gift that exceeds the annual gift allowance to family members?

If in the future - they need to apply for any type of assistance (long term care), how do they show that they were not "unloading" their assets to not have to use them for care or medical expenses.  Note: They have more than adequate assets and would be unlikely to qualify for this assistance anyway or I wouldn't be accepting a loan from them but I want to give a educated answer to their question.

I assume some sort of contract or promissory note answers both of these questions, but is there anything else? 

One more question for my understanding - do I need to somehow document to them how much interest and principal they receive annually for any tax purposes (1099 or other document?).

Thanks for the guidance!