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Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.
thank you. You could either employ a solicitor to prepare a loan agreement is between you and your relative. Alternatively, you could consider use of an online drafting service such as the following to prepare a document in this respect instead:
It is important that your relative understands that by not taking security in respect of the loan, if you were to be made bankrupt, they may not be able to recover the full balance of the loan from you. In addition, the loan agreement will be enforceable for up to 6 years under the limitation act and accordingly, if repayment is not envisaged until after that point, though I note from what you say it is, then consideration should be given to signing the document as a deed which is enforceable for up to 12 years. Deeds will not generally be offered by online drafting services as it is a reserved legal practice which any licensed lawyers can carry out.
I hope the above is of some assistance but if you have any further questions, please revert to me.
your understanding is precisely correct in this respect. In terms of your proposal to deal with this however in the gift other than an outright gift is likely to amount to a gift with reservation which was anti-avoidance legislation put in place to prevent exactly the sort of arrangements such as that you propose above. If there is any reservation of benefit in respect of the gift, the amount is likely to be counted as an asset of the estate whether or not it is actually in the estate at the time of their death
The debt would count as an asset as you say and would be assessed for tax. It would then be up to the executor to collect the debt or forgive the debt on the express instructions of your wife.
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