Dilemma

Ali2007_2

When dh and I bought our current house some of it was paid for by a large lump of cash from an offshore trust set up by elderly relatives. I was never in posession of the cash it was paid direct to the solicitors who did our conveyancing. It is a described in paperwork as a loan (it is in my name only).

The Trust requires that a charge is put over our property to cover the tax implications. My dh is not happy as he thinks it will cause us problems when we come to sell the house. I am worried about the inheritance tax implications if I don't do as they say.

Any advice gratefully received

linlin_3

Whose iht are you worried about?
This sounds like the elderly relatives have set up the trust specifically to avoid iht - so you should have no iht to pay on their demise.
Think of the trust as a moneybox. You are obviously a beneficiary of the relatives and on their demise, you will be given some of the contents of the moneybox. In the meantime, you can have the use of your share, by having a loan. The moneybox (trust) has to account for the cash by putting a charge on your house. Once the trust is settled (on the relative's demise), the charge will be removed.
The trust will be managed by financial experts, so it should be easy to obtain their advice.