Family loan and what happens if the lender dies / goes into care ?

King_Nothing

I find it odd for a 94 year old to be giving you a "loan" and saying you'll get the money in their will anyways? Why don't they just give you the money and cut out all the bother, and not have to make you pay back the £20k in 5 years?

CLAPTON

UKBiker wrote: »

At £500 up to £1000 a week I doubt that !! :rotfl:

135,000 divided by 500 is 270 weeks or over 5 years
plus she presumably has some sort of income


so you could repay (or at least save up) the loan in that time scale
and remember that most people don't go into care homes

UKBiker_2

King_Nothing wrote: »

I find it odd for a 94 year old to be giving you a "loan" and saying you'll get the money in their will anyways? Why don't they just give you the money and cut out all the bother, and not have to make you pay back the £20k in 5 years?

Because that's asset stripping and the tax-man and council will want it back. They look very unkindly on people giving away their own hard earned money. (Mercenary bar-stewards)

Its not so much my Gran who wants to go in a home ... My Aunt and Uncle are 65 and are struggling to look after themselves ... So going into a home might come sooner than later.

Problem with going into a home is the local authority look back over 7+ years and see where her money has gone. Any large purchases / flash holidays / gifts etc will be added to her financial assessment .. And they will want a piece of it. They will take everything off her and leave her with £13,000. Now if my £20,000 is included, that's a shortfall of £7000 ... So they have the right to pursue me for that money.

Now if its tied up in my house, i've been told they can put an attachment to the house and force a sale. This only used to happen rarely, but due to the current financial situation, I've been told that's now a given that's what they would do.