Loaning money to mother in law options

My 83 year old mother in law has been diagnosed with spinal stenosis and needs an urgent operation. The wait on the NHS is over a year and she cannot wait that long so has looked at the option of going private. However, the cost is £20,000 and she can't afford the outlay in full, but my wife and I are in a fortunate position where we can loan her the money. My question is are we better to ask her to repay us monthly over an agreed period (she can afford £500 pm) or, as she owns her home, should we just say we'll take it out of her estate when she passes, whenever that will be? 
Any advice or guidance would be much appreciated. 

Comments

  • Spendless
    Spendless Posts: 24,034
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    I'd get this looked at legally because what if MIL shortly afterwards needs to go into care and the LA don't take into account that she owes you £20K back.

    Is your spouse an only child - if not what if your OH's siblings say 'never said owt to me about that guv' 

    Is MIL single and completely single as in widowed or divorced with a financial settlement in place not well she's still married officially but hasn't seen him for 20+ years.

    Has MIL made a will, would she be re-making one to reflect this loan and bare in mind she can do another one at any time.

    You need to protect that you will receive this money back (even if you're prepared to offer it interest free) whilst making the generous offer to improve your MIL's health.
  • Most private hospitals offer their own credit or payment plans, it may keep things simpler if your MIL went down that route.
  • Mojisola
    Mojisola Posts: 35,544
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    44magnum said:
    My 83 year old mother in law has been diagnosed with spinal stenosis and needs an urgent operation. The wait on the NHS is over a year and she cannot wait that long so has looked at the option of going private. However, the cost is £20,000 and she can't afford the outlay in full, but my wife and I are in a fortunate position where we can loan her the money. My question is are we better to ask her to repay us monthly over an agreed period (she can afford £500 pm) or, as she owns her home, should we just say we'll take it out of her estate when she passes, whenever that will be?
    Because of the scenarios Spendless raises, I would definitely get an agreement done through a solicitor.
    You could go for the repayment monthly but have the loan secured against the property - that would ensure you will get your money back.
    It's simpler if you don't want to charge interest.
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