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beachball75

Helping Out Parents With Mortgage

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My parents are moving from down south to up north and downsizing in an attempt to get mortgage-free and clear credit card debt.

Despite the change of location and downsizing however, they can't quite achieve that goal and will still need a (small) mortgage in order to move.

I'd like to find a way to help them by way of monthly contributions. What's the safest way of doing this without being on their mortgage/deeds, etc?

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I missed out the most important part! I'd like to have the money returned one day, so I was hoping there was some common way of having something in the will that I'd get x amount returned to me before the remainder of the estate was shared equally between myself and two siblings.

And by safe, I meant in a way that they wouldn't incur any tax from my contributions.

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I missed out the most important part! I'd like to have the money returned one day, so I was hoping there was some common way of having something in the will that I'd get x amount returned to me before the remainder of the estate was shared equally between myself and two siblings.

And by safe, I meant in a way that they wouldn't incur any tax from my contributions.

If you know how much you will be giving them could you just apply that as an extra proportion of the house when they will it? e.g. 40% to you 30% to other siblings or 50% to you 25% to the others.

Write the money off in your mind though. They may later be persuaded to change the will against you. Also if the government doesn't take the house in care costs, given their credit card debt they might spend the house via Equity Release.

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I think you have to trust them and your siblings. I lent my parents a six figure sum to buy a house (bridging loan type thing) and they paid me back when they sold one of the houses. If some tragedy had happened in the meantime I would have shown my siblings evidence of the loan.

They paid me interest on it (just what I was losing in savings income) in cash, so I was slightly up as that was tax free and they were up as that was less than half the bridging loan interest.

This was over a decade ago in case any of HMRC's finest take an interest, and the period was short so the sums were small.

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I missed out the most important part! I'd like to have the money returned one day, so I was hoping there was some common way of having something in the will that I'd get x amount returned to me before the remainder of the estate was shared equally between myself and two siblings.

And by safe, I meant in a way that they wouldn't incur any tax from my contributions.

Lend them the sum as a lump and place a charge on the property.

If you can't afford a lump from your savings/income, borrow it on your own property and charge the same interest rate as you pay. There's probably a few taxy-taxy considerations, but now you're a banker - leverage and all.

Seriously, a charge cuts out all the nonsense with bequests - it takes priority over all family disputes.

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I think you have to trust them and your siblings. I lent my parents a six figure sum to buy a house (bridging loan type thing) and they paid me back when they sold one of the houses. If some tragedy had happened in the meantime I would have shown my siblings evidence of the loan.

They paid me interest on it (just what I was losing in savings income) in cash, so I was slightly up as that was tax free and they were up as that was less than half the bridging loan interest.

This was over a decade ago in case any of HMRC's finest take an interest, and the period was short so the sums were small.

You are a gentleman Frank, as I always thought. :)

BTW how's the truck?

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