Mum's inheritance doesn't stretch to a house... help!

Doozergirl

Those people already paid tax on their earnings Why not ask if it's possible to claw some of it back?

IHT is something that involves death and many people just don't want to deal with that particualr issue. The fact that the OPs grandmother was particularly elderly and the fact that house prices have risen so sharply over ten years has made the difference between a small amount of tax and a hell of a lot.

There may well be nothing available but this is MSE, is it not? Why can't people ask if there is an entitlement without being deemed moneygrabbers? If the answer is no, it is no. Anyone else here going to get a property as a result of this family's misfortune? So why judge?

merlinthehappypig

Doozergirl wrote: »

Retirement properties often cost less than properties for non-oldies

Having looked at this in some detail as a possible option for my parents-in-law, I'd actually have to disagree here, based on our experience.

In almost every case we found them smaller by comparison and much more expensive than similar flats not aimed at older people (and generally more difficult to sell on as well) I appreciate that they have alarms and wardens, but, on average, the service charge was around £2000 a year on a flat costing around £150000. Difficult to see what the premium was for (and perhaps why re-sale is so difficult)

silvercar

The fact that the OPs grandmother was particularly elderly and the fact that house prices have risen so sharply over ten years has made the difference between a significant amount of tax and a hell of a lot

Agreed, but its also made the difference between a sizeable inheritance and a small one. 40% IHT means the family keep 300k plus 60% of the remainder.

Where were the parents intending to live if they hadn't had this inheritance (if it had been used to pay for care for example)?

merlinthehappypig

Doozergirl wrote: »

Those people already paid tax on their earnings Why not ask if it's possible to claw some of it back?

IHT is something that involves death and many people just don't want to deal with that particualr issue. The fact that the OPs grandmother was particularly elderly and the fact that house prices have risen so sharply over ten years has made the difference between a small amount of tax and a hell of a lot.

There may well be nothing available but this is MSE, is it not? Why can't people ask if there is an entitlement without being deemed moneygrabbers? If the answer is no, it is no. Anyone else here going to get a property as a result of this family's misfortune? So why judge?

Agreed - it's not as if the OP is out to get anything, just trying help their parents.

Curv

Doozergirl wrote: »

I take it no-one posting has family whose estate fall within that bracket?

IHT is something that involves death and many people just don't want to deal with that particualr issue.

I have family whose estate falls within that bracket and said family has made provision to mitigate the tax.

Granted, it's an emotive subject, but no matter how reluctant those involved are to deal with the issue, the fact remains that provision can be made. If people choose not to... that remains their choice but the consequences must be dealt with.

Sorry if it sounds harsh - I don't mean it to be... I'm truly sorry for the OP's loss.

$$$_12

louidog wrote: »

I was wondering what I had missed here too!

Ditto. While I'm very sorry for your loss - I find it difficult to have any sympathy on the home buying front for your folks with £250K sitting in their back pocket. Much less if they think they deserve some state help to boost it.

To put this into perspective this is roughly 10X the average wage - in cash! I doubt even Northern Crock would lend you that much.

As a fully paid up member of the peasant class - it's good to see inheritance tax doing its job.

Being serious for a second though. Are your parents looking for somewhere for life or will they consider moving again?

If they'd consider moving again in the next few years - perhaps renting a nice place might suit (the interest on that sum would get you a very nice place to stay).

If they are planning to stay - then it's probably not worth worrying about the movements of house prices in the future. Just concentrate on finding somewhere they can be happy (while accepting some compromises may have to be made).

Doozergirl

silvercar wrote: »

Agreed, but its also made the difference between a sizeable inheritance and a small one. 40% IHT means the family keep 300k plus 60% of the remainder.

Agreed again But more expensive property and subsequently a higher proportion of tax based on the governments inability to raise the threshold in line with those house prices means only smaller property is available even accouting for those rises.

webtalk

wibbler wrote: »

My mum and dad have worked away for 15 years caring for my grandmother in Sussex. They haven't been able to afford a house, and have rented. They are 63 now.

This is the fate of a lot of carers.

wibbler wrote: »

After dividing it between my mum and her sister and adding inheritance tax and fees, my mum's left with £250,000 - which is really a disgrace, but that's for another day.

Maybe it ISN'T for another day. This will remain between them until the day your parents die and could well affect your relationship with that side of the family.

It might be necessary for her to have it out with her sister and explain why she feels she has been cheated. And, of course, she has the option of contestign the will - but maybe losing some of what she has in the process.

Not addressing the situation will result in festering. She should either tackle it head-on or genuinely let go (easier said than done, but it is inher best interest).

wibbler wrote: »

She is trying to buy a house - but anything remotely decent within 30 miles of them is well over £250,000 now

Couldit be that her standards are too high?

May I suggest that they think very carefully when choosing a home. It won't be long before one or both of them may start becoming disabled, and that has far-reaching consequences on quality of life in unsuitable accommodation.

wibbler wrote: »

Is there any help for people in this situation? My parents have grafted for years, paid all their taxes, given a chunk of their inheritance to the Government - only to be left with the remaining (albeit quite substantial) amount of money that doesn't even begin to pay for a house. Anyone have any ideas?!

They're fortunate to have that and consider themselves blessed. And you should think the same.

Tehre are people who start with nothign, care for their parents, and find themselves in real poverty as a result. Even with benefits their lives are dire in the extreme.

suzyq

At 63yrs old surely it would be more sensible to rent a property, put the money in a few high interest accounts and ISA's. If anything should happen to either parent there is the possibility of the house they buy having to be sold and used to pay for care home fees.
They should take a few holidays and enjoy themselves as they have spent so many years caring

dmg24

Doozergirl wrote: »

Those people already paid tax on their earnings Why not ask if it's possible to claw some of it back?

IHT is something that involves death and many people just don't want to deal with that particualr issue. The fact that the OPs grandmother was particularly elderly and the fact that house prices have risen so sharply over ten years has made the difference between a small amount of tax and a hell of a lot.

There may well be nothing available but this is MSE, is it not? Why can't people ask if there is an entitlement without being deemed moneygrabbers? If the answer is no, it is no. Anyone else here going to get a property as a result of this family's misfortune? So why judge?

I don't think anyone has an issue with where the OP has got the money from, but rather that they want more?

Equally, there is no problem with asking about any additional entitlements, but surely someone with such a large amount of capital would expect comments about their expections?