Bank of Mum and Dad – Possible Probate Implications
Owing to the state of the economy and the nature of our housing market, loans and gifts from parents to children are becoming increasingly common. Although the temptation is to be completely informal in making these arrangements, it might be worth considering how they should be recorded and documented. HMRC look closely at estates where inheritance tax is significant. Executors will appreciate a clear record of relevant loans and gifts and the terms on which they were made.