Is this a PET
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?
Comments
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.
No
Not unless the security is called in. Until that point there is no loss to her estate.