HeavyHeart, EmptyPurse

lucytricker_2

I have read your post, and I can't believe that the parents are being so selfish.

On the otherhand, their selfishness may have serious inheritance tax consequences under the new previously owned assets legislation (schedule 15 Finance Act 2004).

If the parents previously used to own the house, and sold it to your husband (a connected person) but have continued to live in it rent free, then it is highly likely that on death, the asset will be deemed to still belong to the parents and therefore to be part of their estate for inheritance tax purposes. This is of course unless they are paying market rent (which as I understand they aren't).

The implications of a charge to inheritance tax on death are that if the value of the estate is over £285,000 (using 2006/07 rates) then 40% inheritance tax could be payable. This of course reduces the amount that you would be left on the death of the parents.

There are also income tax implications for the parents who may have to pay income tax on the annual rental value of the property they live in.

Of course these are only my thoughts which I hope are useful and they are not intended to be relied upon in anyway. You should always seek professional tax advice before coming to any decisions.

I really didn't want to make your situation seem any worse, or to bore you to death with something I find interesting (tax), but I think that forewarned is forearmed.

All the very best of luck with everything.

QueenB.

I have sat here reading this thread from start to finish. it has moved me for so many reasons and i am sorry to hear of the position you are in HH but i am truely inspired by your strength and the relationship you have with your OH.

There is so much good advice on here and this thread shows the best and worst in people. The worst can be seen by your P.I.L's, the best can be found in the wonderful people here and you and your OH.

Have you and your OH looked into any of the advice given yet?

Like many people here i wish you would come back just to say hi, we are worried and you are dearly missed.

Take care.

sophistica

Haven't had time to read all the posts...maybe someone has already suggested this...remortgage your house based on your partner's income. If you had a mortgage of £140k - you would pay approx £583 per month interest only. At the end of the term and when his parents have passed away you can use the equity from his parents flat to pay back the loan. You can then live in peace and cut up your credit cards and no need to move. Have I missed something? Go to a mortgage broker. Another suggestion you could see what the Citizens Advice Bureau think...

VegasKitty

have just read your post & am a bit confused.


How exactly did Petes parents make you spend £140K on credit cards?

or is that just you not wanting to cut back at all & carry on living beyond your means & expecting someone else to pick up the pieces?

I am amazed at all the horror & 'disgust' thrown at 'Petes parents' here people! lets remember this is a very one sided conversation & I for one would like to know all the facts before I start baying for someone's blood..... That is, unless they, say, got themselves into a ridiculous amount of debt then willy-nilly banded about token (& utterly useless) phrases like 'release the equity' and then had the nerve to try & make out they were the victims.

God! grow up & take some responsiblity!! I bet you weren't having overly dramatic 'suicidal' thoughts while you were spending all the money.

Another thing that I just don't understand, is this 'huge house' in Cheshire, did you think this was the only house in England that had gone up in value?? Why, when you had, by your own admission a small mortgage on it would you think for one moment that you would be able to sell it off, make a huge profit & then being able to buy a small flat at the same prices they were when the huge house in Cheshire was at when Pete (& lets face it, not you) bought it. Or did it not occur to you that all house prices had risen? Or is it just that you want everything your own way?

You wanted to sell a house & make a huge profit AND then buy a flat at a rock bottom price, all the while continuing to spend money that you weren't earning & couldn't possibly afford to pay back?

halloweenqueen_2

I can only speak for myself but when someone has hit rock bottom, for any reason, you try to help them. They have been stupid with their finances I think they admit that. When asking the inlaws for a peppercorn rent they were disowned. Depression is a big killer and I think a lot of people on here realise that so were more sympathetic because of it.
I think a lot of people also advised against dwelling on the inlaws themselves. It is a one sided argument I agree but we all make mistakes and sometimes it takes you getting yourself out of the situation to see how daft you've been sometimes.
Not having a go at you vegas, just trying to help someone who is genuinely bewildered at where their own excesses have got them.

nocashkate

When someone has got themselves in a terrible and stressful situation, there is no point in simpy pointing out it's 'their own doing'

The money has been spent, the situation IS WHAT IT IS. Blame doesnt help anyone does it? Or change the fact the debt and depression are there.

Support and advice is the only way forward and there are enough cold hearted people in the world without another one.

People make mistakes and this site is not for pointing the finger or judging others.

x

wendym

I think that when you are at your wits' end, knowing all or some of it is 'your own fault' makes it worse, without being reminded.

I have been struck by the warmth and support of the contributors to this board, and although I have no expertise to offer, am one of those who felt concern, and would love to hear that Jen is OK.

QueenB.

Vegaskitty i think you should read the whole thread through again and you will see how those in laws did contribute to the some CC debt, and how the way the P.I.L have behaved is ungrateful. True this is one sided but HH as admitted to her and her OH making somewhat silly decisions with money at times.

As for the house and flat thing, they did not wish to sell it for a huge profit and get a flat at rock bottem prices, they had no intention of selling the house originally, the fact that they asked for a small contribution towards the mortgage as it was becoming a struggle and where refused even though in affect it was their house not the P.I.L's lead to the selling situation. It was their P.I.L that picked the flat again causing HH and her OH more money problems.

In fact instead of me sitting here repeating what has already been said, i suggest once again that you go back and re-read the WHOLE thread.

Telling someone who is feeling as she is to grow up and take responsibility is not acting in a responsible way yourself, nor is it constructive advice.

Stupidspender_2

I an a little confused by all this, maybe its just my lateral way of thinking but......
What the heck has the 140,000 credit card debt got to do with the house that Petes parents lived in?

At the very most the mortgage on that property with a outstanding 21,000 would be about £175 per month?
I don’t see the connection at all with the running up of the massive 140k debt on credit cards to the none payment of Petes parents of say £175 per month on the house?

Notwithstanding this you obviously are in a position where you need advice.
Well heres my advice. STOP SPENDING NOW!
It may sound harsh but I really think you need someone to tell you that. I think that you have been deluding yourself that somehow all your exuberant spending (140k) is in someway your mother-in-law’s fault, ITS YOURS!
Have a good cry and soul search and then look at it head on and take full responsibility for your actions I fear without your admitting to yourself that your the course of your debt problem you have no chance of ever overcoming it.
If you do get to a stage when you are in the correct mental mind set to overcome this hill then this site is full of fantastic help and support.

VegasKitty

"Blame doesnt help anyone does it? Or change the fact the debt and depression are there."

Well, thats one hell of an attitide to have. Under that I could go out & rob a bank, or kill someone, but its ok, because 'blame doesn't help anyone does it'?

What a banial, ridiculous attitude & frankly typical of 99% of the population of this country. Like I said, grow up & take responsibility for your own actions, stop expecting everyone else to bail you out.

"people make mistakes"
certainly they do, I frequently do, however, but £140K is an awful lot of 'mistakes'.


"Support and advice is the only way forward and there are enough cold hearted people in the world without another one"

Really? cos from where I'm sitting, there are more than enough whingers, whiners & responsibility sherkers in this world, not to mention scroungers all determined to live beyond their means & then go off crying & blaming everyone except themselves when it all finally catches up with them. I'm not cold hearted, not at all. But I do object to constantly being surrounded by idiots in trouble of their own making, complaining about it & expecting others to get them out of it.

"People make mistakes and this site is not for pointing the finger or judging others"

But its acceptable for this person to put all the blame for her problems at 'Petes parents' & in doing so ask everyone to judge them?? Utter drivell.