This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

lending to my son

jugu
Posts: 1
Joined: Wed May 08, 2019 3:51 pm

lending to my son

Postby jugu » Wed May 08, 2019 4:21 pm

We are buying a new property. We want our son to be a joint owner to avoid,

1 the probate in the future
2 will contest from my step child who is from my spouse's earlier marriage.

We would like to lend £300000 into his account for purchase of his one third share rather than giving it as gift in case, we need it for some reason or he asks his share in the future.

He intends to stay with us in the same house with his future wife. What happens in the worst case, if the couple splits and she asks for half of his share from his one third share being it a matrimonial home ?

Does he have to pay our loan first or her half of one third of his share in the property if it needs to be sold ? What happens if he hasn't enough funds to pay both of us ?

How do we draft the said loan ? Can we put a condition that in event of marriage break up our loan should be paid first ? His wife must know about this loan before marriage ?

AGoodman
Posts: 770
Joined: Fri May 16, 2014 3:47 pm

Re: lending to my son

Postby AGoodman » Thu May 09, 2019 10:14 am

What you have there is a question about divorce law but it doesn't sound like a great idea.

Your plan doesn't reduce the tax liability as the benefit of the loan remains in your estate.


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”