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    My parents recently retired and still have some mortgage to pay. I'm thinking of helping

    18 October 2021

    Question by Jenny

    Hello, my parents retired a few years ago and still have £25,000 to pay off on their mortgage. I’m thinking about helping them out and potentially loaning them the money to pay it off as they seem to be struggling recently.

    Would I be able to do this and what problems might this cause?

    Thank you, Jenny.

    Answered by Boring Money

    Hi Jenny,

    What a lovely gesture. Are you planning to make a formal loan? This may be a great idea as it will be treated as a debt on their estate when they pass on and would not form part of their taxable estate. It can be on an interest free basis. You may want a solicitor to draw up a deed.

    To secure your loan you would need to have a charge on their property. Again legal advice in needed.

    If it's a pure gift you may struggle to get it back and it could be included in their assets if they need care in the future.

    Hope that helps! Legal advice is recommended!

    Regards

    Justin King

    Answered by

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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.