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Personal loan when lender dies
DivineSaver
Posts: 60 Forumite
in Loans
Loaned between family members. A is the lender. B is the borrower. Loan is secured against B's property.
A is in their 80s and with current repayment plan, loan will never be paid off in full during their life time.
B is A's next of kin and is beneficiary in the event of A's death.
What will happen to this loan when A passes away?
A is in their 80s and with current repayment plan, loan will never be paid off in full during their life time.
B is A's next of kin and is beneficiary in the event of A's death.
What will happen to this loan when A passes away?
0
Comments
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Well, surely unless if A is regulated by the FCA and/or is a bank, they can't legally perform any secured loan.
As for the 2nd bit? Sounds like a way around inheritance tax? Well, HMRC will see it that way.
If this "loan" is a way to get around Gift Tax/Inheritance tax, it'll be caught out.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
You need to speak to a solicitor."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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DivineSaver wrote: »B is A's next of kin and is beneficiary in the event of A's death.
In this case B should not of put a charge on A's property - total waste of money there !0 -
Well, surely unless if A is regulated by the FCA and/or is a bank, they can't legally perform any secured loan.
As for the 2nd bit? Sounds like a way around inheritance tax? Well, HMRC will see it that way.
If this "loan" is a way to get around Gift Tax/Inheritance tax, it'll be caught out.
That isn't correct - why do you think it is?
As for HMRC seeing this as a way around IHT I'm not sure why you think that either - the loan forms part of the estate of A in the event of his/her death and thus will be considered for any IHT due (above any nil rate band or allowances).0
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