Loan on House PropertyHome loans
It would pay back the loan at an interest for a certain amount of space of time or until my life, at which point the loan would run out. They will be able to buy an apartment and a house, and I will get a refund every month of the amount I loaned them until the loan is repaid or runs out.
Isn' t it right that since this is a loan and not a donation, there would be no death duty (IHT) that would be payable if the loan were fully reimbursed? If I died before the loan was reimbursed, would IHT be responsible for the amount overdue? Other loan reimbursements would be reversed and would now be a donation and subject to taxation as a donation within the seven-year time limit.
Suppose you think it makes sense for your boy to make this acquisition - given the obvious difficulties in obtaining a home loan - this scheme would be completely legitimate as long as it is a loan rather than a present. The value of the loan for taxation reasons would stay part of your inheritance and would be subject to taxation on your deaths.
When the loan is non-interest bearing, the location is slightly different. Is it possible to prevent estate duty by giving my nurse funds? This means that your child would be subject to estate duty if you died within seven years of the transfer of the moneys. In this way it is clear what is due and when, and if any issues arise if any of you dies before repaying the loan, the administrators could solve the issue.
When you want the loan to end with your passing, it is practically a renunciation of the amount due, which is an estate donation. "Previously, if you wish to relinquish the loan or part of it, the relinquishment must be included in a document so that it can be approved by the IRS.