I recently borrowed money from two friends in order to invest in a property abroad. The loan from one friend amounted to approximately 25% of the purchase price, while the loan from the other amounted to the remaining 75% of the cost. It has been agreed that these loans will be repaid in one lump sum to each person, as opposed to there being installment payments.
I wish to ensure that, in the event of anything happening to me before the loans are repaid, my two friends are protected. More specifically, I would like to have it stated that the property should be sold and the loans repaid in full before my estate is distributed among any other beneficiaries of my will.
Can this type of clause be written into an ordinary will? I do not simply wish to bequeath the property to my friends as this would presumably leave them open to an Inheritance Tax charge. Nor (for various reasons) do we wish to have the property registered in joint names.
Is there some legal way of protecting their interests that will not subject them to any tax charges? Although I have no reason to worry that the main beneficiary of my will would do anything to see my friends out of pocket, I want to ensure that the property does not actually form part of my estate until the loans have been repaid in full. Can this be done?
As the property is situated in Italy, someone has suggested that I make a separate will in Italy which only covers my assets there. However, I can only presume that this arrangement would have similar Inheritance Tax implications for my friends.
Any help or advice would be greatly appreciated.
I wish to ensure that, in the event of anything happening to me before the loans are repaid, my two friends are protected. More specifically, I would like to have it stated that the property should be sold and the loans repaid in full before my estate is distributed among any other beneficiaries of my will.
Can this type of clause be written into an ordinary will? I do not simply wish to bequeath the property to my friends as this would presumably leave them open to an Inheritance Tax charge. Nor (for various reasons) do we wish to have the property registered in joint names.
Is there some legal way of protecting their interests that will not subject them to any tax charges? Although I have no reason to worry that the main beneficiary of my will would do anything to see my friends out of pocket, I want to ensure that the property does not actually form part of my estate until the loans have been repaid in full. Can this be done?
As the property is situated in Italy, someone has suggested that I make a separate will in Italy which only covers my assets there. However, I can only presume that this arrangement would have similar Inheritance Tax implications for my friends.
Any help or advice would be greatly appreciated.