large amont of money

whitewing

Not meaning to be a misery first thing on a Monday, but I would wait until she has actually passed away before looking into this too deeply.Someone I knew died (unexpectedly), some money of his was left to his mother, who said she would pass it on to his wife. When the money came thro that was a different story though. It was such a shame and caused a lot more heartache for everyone.

*Chattie*

was just about to post the same, let the lady die with some dignity rather than scrabbling over her money already.

quintwins

whitewing wrote: »

Not meaning to be a misery first thing on a Monday, but I would wait until she has actually passed away before looking into this too deeply.Someone I knew died (unexpectedly), some money of his was left to his mother, who said she would pass it on to his wife. When the money came thro that was a different story though. It was such a shame and caused a lot more heartache for everyone.

i completely undertstand you shouldn't count your chickens before they hatch and i don't expect it all to be instant but she's unlikely to live out the week, and we didn't bring this up, his parents are very good and have given us gifts of money before, and as she has access to all her mothers finances she does know whats coming to her and i know they would never say anything unless they meant it

quintwins

*Chattie* wrote: »

was just about to post the same, let the lady die with some dignity rather than scrabbling over her money already.

neither me nor my husband brought this up it was his mother, sadly this has been a long time coming and it will be a huge relief to her for it all to finally be over (both his granny and his mother), she was just being practical and i was just wondering where we stood,

calleyw

quintwins wrote: »

i completely undertstand you shouldn't count your chickens before they hatch and i don't expect it all to be instant but she's unlikely to live out the week, and we didn't bring this up, his parents are very good and have given us gifts of money before, and as she has access to all her mothers finances she does know whats coming to her and i know they would never say anything unless they meant it

It can take months if not years to settle a estate it depending on how complicated it is. And some times there can be nothing left if everyone does not agree.

If you MIL is keen for you to have money then a deed of variance can be done as long all beneficiaries agree. This can be done up to 18 months after the death. And gets around the 7 year gift problem.

I have to agree with other posters at the moment I would be more worried that my grandparent was dying rather than thinking about the money I was told I was going to get.

Sad to say people change when money is involved and lets just say I know from personally experience people change and any promises are like confetti in the wind.

Yours

Calley

quintwins

see as awful as it sounds it's not a bad thing she's dieing, she has NO quailty of life the only thing she does on her own id breath she can't speack or eat or even move it's horrible and i do feel bad for her she's been like this since before i met my hubby so everyones relieved for her that it's coming to an end and that may be why everyone thinks we're all being hard

all the esate has been liquidised expect for these 2 building to pay for her nursing home fee's and they only expect it to take a few months to sort it out because there already in control of her finances, there are only 2 beneficeraries(sp?) and they don't want to split it in 2 then split it between there kids, i just want to point out i'm not waiting in line with my hand out, we didn't expect to get anything we didn't bring this up if we got nothing we wouldn't feel hard done by as it's not like it's ours and we have a right to it, i was just wondering what happens if we do

btw my father in law was done out of his inhertance and was more than a little bit annoyed about it and has always been very clear about what will ahppen when they die and inform us when stuff change(it's very morbid) he would never make a promise of money and not follow it threw

zzzLazyDaisy

quintwins wrote: »

oh so if she's still here in 7 years we don't pay any tax? but if she dies it comes out of his inheritance as part of that inheritance tax, sorry if i sound dim i'm just struggling to understand what happens

To answer your question

Yes, if she is still here in seven year, then there is no tax to pay, by anyone. At that point it is a tax exempt gift.

If she dies within seven years there MAY be some tax to pay, but any tax to be paid would come out of the estate, and it is on a sliding scale (more tax will be payable in year one than in year six) and it also depends on whether the estate has to pay IHT anyway.

There is no IHT between spouses and it is very likely that they have left everything to each other, apart from some gifts perhaps, so it is very likely that there will be no IHT to pay anyway.

From the sounds of it, they are probably very clued up about IHT, and will have sorted this out, but if you are worried just ask them.

Either way, YOU and your OH won't be left trying to find money to pay off a tax bill after you've spent the money, which I think is what your main concern is?

quintwins

zzzLazyDaisy wrote: »

To answer your question

Yes, if she is still here in seven year, then there is no tax to pay, by anyone. At that point it is a tax exempt gift.

If she dies within seven years there MAY be some tax to pay, but any tax to be paid would come out of the estate, and it is on a sliding scale (more tax will be payable in year one than in year six) and it also depends on whether the estate has to pay IHT anyway.

There is no IHT between spouses and it is very likely that they have left everything to each other, apart from some gifts perhaps, so it is very likely that there will be no IHT to pay anyway.

From the sounds of it, they are probably very clued up about IHT, and will have sorted this out, but if you are worried just ask them.

Either way, YOU and your OH won't be left trying to find money to pay off a tax bill after you've spent the money, which I think is what your main concern is?

yes thats exactly it, i didn't want to be suddenly landed with a huge bill i couldn't pay, thanks that really helped me understand it, and yes if my mother in law dies everything goes to my father in law, however if he died his business goes to his sons, but this would be a gift for his mother who i hope will be around for alot longer than 7 years, thanks for your help

calleyw

zzzLazyDaisy wrote: »

To answer your question

Yes, if she is still here in seven year, then there is no tax to pay, by anyone. At that point it is a tax exempt gift.

The seven year rule does not apply to a deed of variance which may cost a couple of hundred to arrange takes the whole tax exempt gift out of equation.

The money then goes direct to the OP husband.

I don't get the bit about not wanting to split then share between the children as that exactly what they want to happen.

But each to their own.

I know which way I would deal with it. As you never know what is around the corner.

Yours

Calley

zzzLazyDaisy

The correct term is a Deed of Variation more info here:

http://www.inbrief.co.uk/deed-of-variation.htm

However, this is not OP's decision. If her MIL chooses to simply gift part of her inheritance rather than enter into a deed of variation, there is not much OP can do about that, and MIL may have her own reasons for not wishing to go down that route, who knows?