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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Granting a mortgage is not a taxable event so the interest rate, if any, is irrelevant. A formal loan document would be a good idea to protect both you and the trust.
I do hope that I have been able to set your mind at rest on this matter.
If it is a gift then that does not concern you, Philip. The UK has no Gifts Tax regime; just thank your lucky stars you don't live in France where gifts tax kicks in at 5K Euros!.
Yes, it would be adviseable for a solicitor to draw up the loan agreement.
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Yes, Philip. it could. As I told you the UK has no Gift Tax regime. Neither does the isle of Man either.
I don't know who gave you that advice, but it does not appear to be correct.
Please don't forget my rating.
Delighted to have been of assistance, Philip. Actually the US limit is $14K not 13K!
Thsnk you for your support.