Money lent

givememoney

We are paying for a new fence for our neighbour as it will benefit us as much as her and she cannot afford the layout.
We are going to make arrangements for her to pay the money back when work is completed. We are both in our 70s so there could be the possibility we were to die before it is paid back in full. 
My question, if that were to happen could we expect her to pay our next of kin the remaining sum?

43722

I am looking at my fence as i write. Last year the old one came down in a storm. I split the cost with my neighbour. As you say, it benefits you both equally.

macman

Yes, the debt would be due to your estate (not necessarily your next of kin). However you would need to formalise this by drawing up a clear agreement of what is agreed, the timescale, interest etc, and get it signed and witnessed by both parties. Nothing on paper means that it is unlikely that the debt would ever be repaid following your demise.

Herzlos

Unless it's a huge fence I wouldn't bother with the hassle to formalize a loan that's presumably only a few hundred £. You're splitting the bill 50/50 and she's repaying her half over time?

givememoney

Herzlos said:

Unless it's a huge fence I wouldn't bother with the hassle to formalize a loan that's presumably only a few hundred £. You're splitting the bill 50/50 and she's repaying her half over time?

Actually it's nearly 3k we live in London

macman

£3K? That's a huge fence....

givememoney

macman said:

£3K? That's a huge fence....

14 panels concrete posts, concrete gravel boards, tree roots, drain avoidance, cable move etc. All quotes similar price

cymruchris

If you both pass away first - had you considered letting them off the remaining debt as a parting gift? I imagine it would be likely that you're both not going anywhere tomorrow - and the likelihood you'll be around for a little while yet. What loan term were you thinking of? It may be by the time the 'time' comes - there might only be a small balance left outstanding anyway (and more than likely you'll both still be around by the time the loan is repaid anyway)

PRAISETHESUN

I agree with the comments above that the only way to ensure it gets paid is to document the loan agreement. That way you (or your estate) can enforce it if your neighbours don't pay for whatever reason. It's probably not worth the hassle for the amount of money involved, but if you absolutely have to make sure that the money gets paid back under all circumstances, then you will need a loan agreement to have any reasonable chance of getting it enforced in court.

[Deleted User]

Does the neighbour want the new fence? 

enthusiasticsaver

Presumably it is a shared boundary so you are splitting the cost 50/50? If you want to ensure your estate gets the money back then you need a written loan agreement but that is only any good if your executors are willing to  go to court to enforce it.  What are the arrangements for her to repay?  At 70 that does not mean you are on your last legs so entirely possible she will repay the £1500 in your lifetime.