Advice on inheritance offer

cyantist

rollerball wrote: »

Thanks so much for these replies, its really good to know that I am getting really considered and honest advice here.

To clarify a point that's come up a few times - my mother plans to put her property in both mine and my sisters name and is currently starting that process. She's reluctant to comment on this matter, saying it's nothing to do with her.

Why is she doing this? The estate doesn't sound like it's large enough for you to be having to pay inheritance tax anyway. Is it just an attempt to avoid potential care home fees? There seems way more negatives to positives in doing this.

I think it's very generous of the sister to be offering this even with adding a small amount on to cover inflation. But you do need to discuss what will happen in various scenarios such as if your mum moves into a care home (even if she transferred the property to you, what if she moves in very shortly after the transfer?)

sleepymans

I have a nagging suspicion that the loan and the proposed transfer of ownership of Mother's house are part of some financial monkey business at which brother in law is at the bottom!

Please OP, consider returning the money Asap AND get Mum to see a competent lawyer who was not recommended by brother in law! To discuss the implications of transferring the house. Both transaction actions seem highly risky and unnecessary to me, an outsider looking on.

I think the majority of posters on this thread are also worried for you and Mum, so hopefully you feel we are considering your best interests.

Good Luck

Pollycat

sleepymans wrote: »

I have a nagging suspicion that the loan and the proposed transfer of ownership of Mother's house are part of some financial monkey business at which brother in law is at the bottom!

I think a few of us are with you on that.

margaretclare

The man - your BIL - who started a successful company and sold it for millions, is obviously an extremely astute businessman. He doesn't stop being an astute businessman just because he's sold his company! It's in his bones.

Personally I would have sent the 'gift' straight back as soon as I realised it was no gift, but came with strings. The mention of words like loan, inflation and repayment out of inheritance would have impelled me to do so.

Why can't people realise - there is no such thing as an inheritance until and unless someone has died. Until that person has breathed his/her last, whatever money/assets he/she has belong to him/her, for his/her use. Not for anyone else!

tea_lover

Does the BIL even know the house is being signed over to you and your sister? How are you supposed to pay back from an inheritance you'll never receive?

Homeownertobe

Pollycat wrote: »

Staggering?
Really?

I can't see many posts saying that.

I can see a sister offering her brother a loan with certain conditions for repayment and a BIL who has changed the goalposts:


You make it sound like the brother initiated the discussion about the loan.
He didn't.

I think the OP has an entitlement not to be shafted by his (shifty-sounding) BIL.

Shafted? By getting £25,000 now in return for the same index-linked value in the future.

What a peculiar world you live in.

Gigervamp

Jamiesmum wrote: »

You'll be living knowing they bailed you out and they could probably use this against you at any point and create massive hostility.

This is another problem.

We were very grateful when OH's family gifted us a house. Unfortunately, we've discovered that they now feel entitled to tell us how to live.
I have terminal cancer, and my husband has been working full time, then caring for me when he gets home, as well as doing the shopping and the usual household chores. He's now off work sick himself, and yet they keep nagging him to get the garden tidied up, as it's been neglected while I've been ill (3 years).


They seem to think that they're our landlords.

Pollycat

Homeownertobe wrote: »

Shafted? By getting £25,000 now in return for the same index-linked value in the future.

What a peculiar world you live in.

Yes, thankfully I live in a world where I would do (and have done) loaned my sibling money at no profit to me or my husband.

That includes a loan taken out on their behalf.
We pay the loan to the bank each month, they pay us.
We were in a position to avail ourselves of a very good interest rate, my sibling would have paid much more in interest.
It also includes a separate loan interest free.
We are very much aware of the potential pitfalls of these arrangements and loaned the money understanding the worst case scenario.

The total amount is just slightly less than the amount the OP is talking about.
And we are not millionaires, let alone multi millionaires - far from it.
My sibling had no idea of entitlement to our money.
We offered to help.

Yes, on reflection I'm so glad I live in my 'peculiar' world instead of the one you appear to inhabit.

FBaby

As it's been said already, it sounds like your sister and her husband had other ideas of what was on offer.

What it is clearly a loan. He is prepared to give you money now that you will have to repay with interest when your mother passes away. The interest is the inflation, ie. the increase in value of the amount. What this means is that say your mother passes away in 20 years, 25K will be worth less thatn £25K now because everything will cost more, so what he expects is the 25K + whatever the value that makes it equal to what it is now.

With this in mind, I went off and got several quotes for work that my house desperately needs and that I'd resigned myself to not being able to do for years.

The question is: How much will this work increase the value of your house and how much more/less is that compared to the value of your mum's house? Say that putting £25K in work increases the value of your house by 20K immediately. Assuming the property market goes up, it means that that value will also increase and probably do so more than inflation, so in essence, there is a chance that you would overall benefit from having the money now.

However, I agree with everyone else, it is open to many troubles, and fall out with your mum or sister. More worryingly, you seem to struggle to understand all these concepts and therefore will never have full control of what you've been asked/expected etc... potentially making you vulnerable.

It sounds that you have more to lose than to gain.

silvercar

Forget the brother-in-law deal to his brother. Your sister seems to be saying very nicely that she is entitled to give away or loan money as much as his side of the family.

Consider it as it is. £25k now for a future repayment out of inheritance. I'm betting it is phrased that way as that is the time when you will have the money to afford to repay. OK there is some interest to pay, so the question is whether you want to get £25k now with the proviso that you pay back £25k+ inflation or not?