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Payment on death question
Windofchange
Posts: 1,172 Forumite
Hi all,
Bit of a strange one perhaps. We are in the process of buying a house, and some of the money that we are using is from my partner's parent who has placed it into an ISA in her name about five years ago. We have topped it up as we have gone, and they have also put a bit in from time to time. The condition to using this money is that it is not a gift, but a loan that must be repaid on the death of my partner. The money is to go to somewhere outside of the family - a benevolent cause. I think from what I can gather that due to the time that it has been in the ISA, we will have no issues proving that this is our money, and not a gift - i.e it has been present for about 5 years in total, and held under my partner's name, so not a sudden dump of cash that might trigger money laundering concerns.
Where we are a bit stuck is that the parent doesn't want anything to do with the money until my partner dies. Whether I am alive still or not, the money needs to be paid to this benevolent cause. We are trying to keep it away from the house purchase, as it will cause issues perhaps with why we are trying to secure a debt against a house purchase in relation to a third party, and we don't want to mess up our mortgage application. I have done some research, and have found information about a 'property protection trust' which may do what we want?
What we want is that we can take this cash and utilise it to buy the house as a deposit. When my partner dies the money is taken and paid to this benevolent cause. A standard will doesn't seem to cut it in that there is no guarantee for the parent that we won't alter that once she is dead. A trust deed on the property also doesn't seem to solve the problem either as it doesn't guarantee that the money will be paid out by my partner - it is the guarantee that the parent wants. What is desired is something that is legally binding, and will guarantee that the money gets paid out to the third party upon death. Is there a way to do this?
Bit of a strange one perhaps. We are in the process of buying a house, and some of the money that we are using is from my partner's parent who has placed it into an ISA in her name about five years ago. We have topped it up as we have gone, and they have also put a bit in from time to time. The condition to using this money is that it is not a gift, but a loan that must be repaid on the death of my partner. The money is to go to somewhere outside of the family - a benevolent cause. I think from what I can gather that due to the time that it has been in the ISA, we will have no issues proving that this is our money, and not a gift - i.e it has been present for about 5 years in total, and held under my partner's name, so not a sudden dump of cash that might trigger money laundering concerns.
Where we are a bit stuck is that the parent doesn't want anything to do with the money until my partner dies. Whether I am alive still or not, the money needs to be paid to this benevolent cause. We are trying to keep it away from the house purchase, as it will cause issues perhaps with why we are trying to secure a debt against a house purchase in relation to a third party, and we don't want to mess up our mortgage application. I have done some research, and have found information about a 'property protection trust' which may do what we want?
What we want is that we can take this cash and utilise it to buy the house as a deposit. When my partner dies the money is taken and paid to this benevolent cause. A standard will doesn't seem to cut it in that there is no guarantee for the parent that we won't alter that once she is dead. A trust deed on the property also doesn't seem to solve the problem either as it doesn't guarantee that the money will be paid out by my partner - it is the guarantee that the parent wants. What is desired is something that is legally binding, and will guarantee that the money gets paid out to the third party upon death. Is there a way to do this?
0
Comments
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To maybe clarify a bit. What I am thinking 'may' make everyone happy is:
1) Deed of trust to state that after the mortgage company has been repaid, the next £xxx is due to my partner.
2) Life insurance for my partner that pays out £xxx to a trust should she die sooner than she should.
3) Creation of a will trust that takes my partners share of the property + the £xxx that has been given by her parent.0
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