How should one pay off a parent's mortgage?

Q My mother is approaching retirement and my brother and l would like to pay off her mortgage. The total amount involved is ?30,000. Will she incur tax? And would it be better to offer an interest-free loan?

JS

A A very thoughtful gesture by you and your brother. Your mother would have no tax to pay on receiving a gift, unless one or both of you were to die within the next seven years when there might be an inheritance tax liability.

This would be avoided by giving her an interest-free loan. Furthermore, a loan could help if she had at any time to claim state benefits that are means tested - for example, the provision of long-term care assistance if this became necessary.