Ask a Law Question, Get an Answer ASAP!
Thanks for your question. The best way to do this, and the most tax efficient, is for your father to treat this as a debt on his estate. This can be done in the will or in a separate document signed by him, such as an IOU detailing what he owes and why. That means that on the death of your father the amount spent on his house can be put in the estate inventory as a debt and acccordingly reduce the value of the estate for inheritance tax purposes. I hope that helps. Please leave a positive rating so that I am credited for my time.