Bridging loan and IHT

[DIEM99]

We are able to give a loan to our son and his wife to bridge a property sale and a purchase for which they have secured a mortgage.
The mortgage company are asking us to make a declaration in respect of their purchase. On the form they are asking us to sign it uses
the term 'gift' throughout in relation to what is in fact a bridging loan for probably only a couple of months.
Were either myself or wife to pass away during the next seven years could the amount loaned briefly be counted as a gift for IHT purposes by HMRC?

[pawncob]

Explain it to them.
Obtain letter from son confirming that it's a loan.

[maths]

Either you are making a loan or making a gift; the transaction cannot be both.

Typically mortgage companies do not like the borrower to incur additional borrowings over and above the mortgage itself; in any event the mortgage ranks in priority to any other borrowing.

If you say it is a loan you may risk the mortgage company not agreeing to the mortgage or possible reducing the amount advanced or they may simply accept it without problem. Depends on amounts involved.

Suggest you gift to son.

[DIEM99]

What does RDA stand for dare I ask? !