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  • FIRST POST
    • mas1964
    • By mas1964 14th Sep 17, 10:24 AM
    • 3Posts
    • 2Thanks
    mas1964
    Loan not repaid
    • #1
    • 14th Sep 17, 10:24 AM
    Loan not repaid 14th Sep 17 at 10:24 AM
    Hi,
    My husband died 6 months ago, I'm doing the probate forms because he had an ISA in his name, it's the only thing I need probate for as everything else was in joint names, except his SIPP pension which is not in probate. I'm coping ok with the forms except there's a question about gifts made in last 7 years. We lent our daughter £20,000 when she bought her house, but she's not paid any of it back yet, so will this count as a gift? It came from our joint savings so do I declare half of it. I don't think it will make any difference but I want to get it right.
Page 1
    • Keep pedalling
    • By Keep pedalling 14th Sep 17, 11:24 AM
    • 3,933 Posts
    • 4,288 Thanks
    Keep pedalling
    • #2
    • 14th Sep 17, 11:24 AM
    • #2
    • 14th Sep 17, 11:24 AM
    This should be treated as a debt owed to the estate, in which case it adds £10,000 to the value of the estate.

    Alternatively, if you can afford it, you could treat it as a gift. If you do this £3000 of the gift is exempt, and if no gifting was carried out in the financial year previous to the gift this goes up to £6000 so would only add £4000 to the value of the estate.
    • getmore4less
    • By getmore4less 14th Sep 17, 3:08 PM
    • 30,248 Posts
    • 18,087 Thanks
    getmore4less
    • #3
    • 14th Sep 17, 3:08 PM
    • #3
    • 14th Sep 17, 3:08 PM
    Do you want the money back?

    what were the repayment terms on the loan? it needs some to be enforceable.

    if she got a mortgage it is unusual for a lender to accept a loan did you not sign something to say it was a gift?
    • mas1964
    • By mas1964 15th Sep 17, 11:23 AM
    • 3 Posts
    • 2 Thanks
    mas1964
    • #4
    • 15th Sep 17, 11:23 AM
    • #4
    • 15th Sep 17, 11:23 AM
    Hi, thank you both for the replies. There was nothing about repayment terms it was just a case of pay us back when you can we were happy for it to be a gift but daughter is very independent and insisted on it being a loan but nothing was formal. I will treat it as a gift on the probate forms I can easily afford it as since then we came into inheritances and now have husband's work death benefit.
    Thanks again.
    • getmore4less
    • By getmore4less 16th Sep 17, 8:41 AM
    • 30,248 Posts
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    getmore4less
    • #5
    • 16th Sep 17, 8:41 AM
    • #5
    • 16th Sep 17, 8:41 AM
    What that does is reduce the transferable nil rate band to your estate.

    Useful to document and let your executors know.
    • mas1964
    • By mas1964 23rd Sep 17, 12:47 PM
    • 3 Posts
    • 2 Thanks
    mas1964
    • #6
    • 23rd Sep 17, 12:47 PM
    • #6
    • 23rd Sep 17, 12:47 PM
    Yes, thank you, I will keep a record. Forms now posted, cross fingers all goes well.
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