Is there a conflict with attorney acting in purchase of new home and loaning the funds?

Trusts Discussion
1

I have just had a query from a conveyancing firm and wondered if anyone can clear this up.

Mr A is severely autistic and has no capacity to make financial decisions.
Miss B is his sister and attorney.

Mr A owns a property and is moving house. Miss B wants to avoid disruption to Mr A, so she is loaning Mr A the money to buy a new home, PRIOR to his first home being sold. (SDLT and CGT issues discussed).

Miss B will then refund herself the money after Mr A sells his current property, that she is loaning to him.

Is there a conflict in her instructing the purchase of his new home (which technically is a second home for the time being) AND loaning him the money to do so?

Many thanks in advance…

2

On the basis that the same firm is acting in both the purchase of the new property and the sale of the existing property, and the loan from the sister is clearly documented so that there is a clear audit trail, I would not foresee any issues.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals