Fromage Frais Posted May 31, 2018 Share Posted May 31, 2018 On 29/05/2018 at 17:38, Gigantic Purple Slug said: How does it work if it's a loan from the bank of grandma and grandad and they end up going into care ? Does the loan count as part of your assets ? If made under 7 years then it is considered part of the estate. You then have the entire estate up to £325 and then taxed after. The fun bit will come when folks die in debt to the bank (which must surely be on the increase) > prices fall > bank is after the shortfall from the estate and looks to claw back some loans. Quote Link to comment Share on other sites More sharing options...
ftb_fml Posted June 2, 2018 Share Posted June 2, 2018 There's a really clear and concise breakdown on this situation on Wolf Street; laying it out as it is without all the human-interest, VI tripe. Rightfully calls it a ponzi scheme; parents having to fund their kids to buy into the inflated property market that's allowing their smug boomer mates to buy a new car every 6 months and have 10 holidays a year... In a financial sense they're like gerbils; dining out on their own kids. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 2, 2018 Share Posted June 2, 2018 On 29/05/2018 at 19:11, regprentice said: If it's documented then yes. However most banks and building societies will refuse to accept a loan from parents as a deposit so many 'pretend' they have made a "gift" and fill out paperwork for the bank stating that it is a gift without reservation. See this on the MSE mortgage forums literally every day. Sometimes it goes wrong...parents need the cash back and kids can't find it, young couple split up and the husband whose parents contributed a gift can't evict the wife because there are kids in the house (court won't kick her out while the kids are under 18), parents can't pay own extended mortgage after losing a job in their 50s, parents can't survive in retirement still paying a mortgage and want the cash back, or even brother and sister fall out after parents die because ones inheritance was 'gifted' as the others deposit and they can't get it back etc etc etc If you can't afford to give it, then you certainly can't afford to lend it......best not do it, best not take it. Quote Link to comment Share on other sites More sharing options...
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