Template for loan to Mother in Law

ILW

I am having to give my 87 year old mother in law about 10k to get her out of a hole with a porch she has bought. (She got an unsolicited mail shot telling her she had won £10,000 in a prize draw and promptly ordered the porch from a window company that knocked on her door.:mad:

I do no expect the be repaid the money in her lifetime but if possible would like to have someting in writing so I at least have some sort of claim on getting it back whenever.

Do not want anything too complicated and do not want this going through solicitors.

Just wondered if anyone had a simple template I could use.

Thanks.

ceebeeby

Oh your poor M-I-L.

Is there a reason she bought something when she didn't have the money to pay for it? I wonder if this would come under the unfair trades act / unsolicited sales?

What's to stop her from doing it again ... and again ... and again!

Presumably her capital (your repayment as you suggest) will come from her house-sale .... in which case, I genuinely think you need to seek advice from a solicitor, as unless she changes her will to leave it to you I don't know what else would be legal (but then, is she of sound mind to change her will???)

Pee

You want a formal document registered with the land Registry and your mother-in-law's action do give some cause for concern as to her capacity... You need to be confident that other family members will not seek to avoid you getting this money and also the Local Authority should she go into care. If your in laws get on well, is there anyone able to go halves with you?

ILW

Sadly she kept quiet about this as she was convinced this prize draw money was on its way. She spent the last of her savings on the deposit and I only found about it now as she is panicking as they installing on monday.

We may need to look at LPA for the future, but I think this has really shaken her up, and I doubt/hope she will not do anything like this again.
She only lives 3 doors from her son and he knows nothing about it. I live 90 miles away so all a bit tricky.

mrbrightside842

if it hasn't yet been installed, can you not cancel before they come? If you tell them she doesn't have the money, I can't see them being too keen on installing it without payment.

ILW

She cannot find the paperwork, so do not even know who she has ordered from. She is now terrified the baliffs will be coming round if she does not settle up. I am happy to pay it for her even though it will hurt, but would just like it noted that it is a loan and have some sort of paper trail.

dmg24

The difficulty in not involving a solicitor is that contracts between family members are difficult to enforce, especially where one of the parties could potentially be seen as vulnerable. You could put a charge on the property, but again, you really need to do this through a solicitor to avoid dispute at a later time.

Rafter

I really suggest you get trading standards involved and stop the work being done - at least then only the deposit will be lost.

£10k for a porch sounds ridiculous and you would just be throwing the equity in her home away.

As far as the agreement, I think as long as you have something in writing that means you get repaid in full if the property is sold, and her signature is witnessed by someone who isn't a beneficiary of her will and that all her beneficiaries, descendents are aware of it then you should be fine.

But I'd go to war with the company who have deceived her first - the bailiffs will not come knocking and a threatening letter - potentially from a solicitor - should get the glazing company off her bank and hopefully her deposit refunded.

Good luck

R.

ILW

Just found out they actually started the installation yesterday. Visiting tomorrow to try and get an update.