Children paying for their inheritance

st999

What do people think of this idea, it arose from a discussion in the pub?

Parents own their house outright and are retired with just enough to live comfortably.

They have 2 children who don't at present need the house and when parents die will probably sell it and split the money. House is worth today £200,000.

Also this is Scotland so if parents need to go into a home the house does not need to be sold to pay for it.:j

Parents want to raise equity to splurge on holidays etc but are wary of selling the house and renting it back.

So say to children if you want to get the money from the house when we die give us £100 per month each and you get the house otherwise you get nothing, or what is left in the bank.


So what do you think of that?

Stan

Torry_Quine

(Also this is Scotland so if parents need to go into a home the house does not need to be sold to pay for it. :j )

Oh yes they do!

Nikabella

So the children are being given an ultimatum that if they want an inheritance then they have to pay £100 per month??

Marcheline

I personally wouldn't like my parents to say that to me. Although I think we will inherit my parents house upon their passing, I would understand if they wanted to sell it and jet off (after a life working hard and looking after their children well) and I would just prefer them to DO it, rather than coming up with what sounds like a bit of a mad scheme. However, if you mention to your children that you're going to sell the house and you detect an objection in their voices, maybe you could bring up the £100 a month idea. I just don't like the tone of it otherwise?!!

consultant31

It's not a God-given right that children inherit anything from their parents. If the parents want to sell the house to 'splurge' before they die, they have a perfect rights to.

However, if they can already live comfortably, why can't they just put a little aside each month for their holidays like the rest of us?

Spendless

I think they should see a financial advisor if they need to release equity to see what is the best way for them eg could they downsize.

Nikabella

It looks like that is what you mean OP. Well I would say that although no-one has a right to inherit money (and I would certainly never expect to from any of my family) I would be very offended if someone worded the "request" in such a way.

I might be wrong but if one parent died first and the other remarried subsequently dying afterwards then the new wife/husband would automatically get to decide what happens to the house. This could mean theoretically the children could spend years "paying" for the chance of an inheritance only to never receive it anyway?!

st999

it arose from a discussion in the pub:eek:

Some people should chill out:rotfl::rotfl::rotfl::rotfl:

Stan

Nikabella

st999 wrote: »

Some people should chill out:rotfl::rotfl::rotfl::rotfl:

Stan

Call me oversensitive :rolleyes:

NAR

Stan this is a brilliant deal for the kids. £1200 pa for maybe 20 years = £24k and they stand to get a return of £100k (at todays prices). In 10 years (never mind 20) the £1200 will be worth a lot less and the value of the property will almost certainly have risen.

KellyWelly

I second what Nikabella said. If I was asked to do this by my parents I would want something legal drawn up by a lawyer to say I owned the house before they died. It's the same as asking your children to buy the house from you now and then leaving you the left over cash after they've burned through it. Sounds a bit like the parents want to have their cake and eat it - stay in their nice house but get the money out of it to spend as well.