I've always stayed within walking distance, but I always see a lot of people parking right near transition race morning. Maybe someone who has actually driven in can give better insight, but it hasn't looked like a problem. Your family can easily drive from T1 out to LaGrange to see you come through 2 times on the bike and get back downtown to see you leave T2 for the run and then see you on the run course and at the finish. I think they have directions to get to LaGrange at the expo, but if not I know the downtown hotels have had them. Or there is also (at least in years past) shuttle busses that take spectators out to LaGrange and back. I've stayed at the Residence Inn and the Marriott and my husband was able to drive out to LaGrange and back to the hotel with no problems.

Several free public lots between swim start and transition ( I have parked here race morning).

You should be able to get in a paid lot within very easy walking distance to finish. I've parked in a few different places without an issue getting a spot.

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stay at the galt house if there is still availability

You park at the Galt House parking garage. That's where I parked in 2012 and had no problems. You also leave so late after the race that normally there wasn't a charge.

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Is parking allowed if you do not stay there?

As long as you pay yes :)

Also FYI Louisville started checking the meters on Saturday, this started a couple weeks ago. So no free street parking Saturday.

Easy. Parking garage on corner of Witherspoon and River rd in front of Joe's Crab Shack. It's free. Get there at 4:30 and get you a spot in line to get into transition race morning. Piece of cake