Thank you. This is anarrangement between family, so there is no consumer credit act criteria.
There is nothing legally tostop you doing this, but I would suggest that you took charge out over theproperty so that if ever she comes to sell, you get paid. Bearing in mind thatyou do not know how long the original property is going to take to sell so youmay be waiting to get your money back for some time.
I would certainly draft up anagreement of some description whereby she agrees to pay you within a particularperiod of time and she confirms that the agreement is intended to be legallybinding and is not just a family arrangement. ( those are actually the legalwords).
I would also suggest that shetakes independent legal advice on what she is agreeing to so that at some stagein the future, she cannot allege that you pressurised her into doing this. Toanswer your question, from a legal point of view, there is no problemwhatsoever that I can see with what you are going to do.
With regard to inheritance tax,that is payable on anything in your state which does not pass to a spouse,which is over £325,000. Provided you live for seven years after the money ispaid over there is potentially no inheritance tax payable.
I say potentially because ifthis is a loan, intending to be repaid, then it doesn't matter how long haspassed, inheritance tax, and applicable is still payable.
Basically, if it is a loan itmay be taxable: if it is a gift it is exempt provided you would survive sevenyears.
Can I help further?
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