Is this a PET

Is this a PET

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My client has allowed her house to be used as security for a loan taken out by her son of £200k.

Are there any IHT implications for my client?

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By gbuckell
13th Sep 2011 09:39

Not unless the security is called in. Until that point there is no loss to her estate.

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By law man
13th Sep 2011 17:44

No IHT; but was mother inedpendently advised?

I agree with gbuckell. There is no transfer of value moving from the mother. If son repays the loan, the lender will release the mortgage.

As a separate matter, I assume Mother received independent legal advice from her own solicitor before signing the mortgage; and the lender insisted that this be done. Otherwise, it is likely that the mortgage is voidable.

 

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