I have a client who wants to give a substantial sum to his son for a house deposit.
For long-term IHT mitigation and estate planning, father will make the gift to a discretionary settlement, which will lend the son the money, interest-free.
I would normally make the loan repayable to the trustees on demand, but I have heard reports of mortgage lenders who are unhappy to accept the uncertainty inherent in that arrangement.
I therefore propose to make the loan repayable on demand, but not during the term of the mortgage.
Does that give rise to any technical problem I have not spotted?
Colemans Solicitors LLP