Paying sibling half of what parents gifted, plus interest

MoneySeeker1

pattycake said:

Your partner sounds like a lovely caring person but the brother sounds just the opposite.  The fact that she’s willing to help him should be sufficient and asking for interest is just plain cheeky.  In her shoes, I would rescind the offer and let him wait for his inheritance.

Not feasible in the event morally.

1. The fact that the £17k does need uprating with inflation - as it will have already "lost value" over the years since sister had it and therefore it's entirely fair to pay appropriate interest to the brother.

2. For the last few decades it's not been possible to know for sure that an inheritance will go to the intended recipient/s in full - courtesy of the State expecting to take money for care home costs if it comes to it. Thus - there may be a sizeable inheritance coming to them both in principle - but, in practice, if one or more of the parents has to go into a carehome - then the State will be after it and there may literally not be enough money left to cover paying the brother his inflation-adjusted £17,000 he is due for. That would mean the sister was sitting pretty at having already had £17,000 - whilst the brother couldnt even get the equivalent of that (just because she'd already had some of hers before the State came along after care home fees).

MoneySeeker1

MalMonroe said:

mason's_mum said:

KezJH100824 said:

He is more than happy to accept the £8,500 but now wants my partner to pay him interest.

I bet he is - to be honest he seems like a piece of work. In his position I'd be grateful someone was willing to help me out at all, let alone demand extra! what's to say he wouldn't have wasted it if he'd received it in 2003?
Would he have demanded interest on the £17k from the estate?
Can the parents not afford to help him out in the same way they did your OH?

Oh that's nasty. He didn't get anything when OP's partner did and is struggling now. I don't think he seems like a piece of work at all, just someone who needs financial help, as did the OP's partner did in 2003. This is where loving and caring siblings come in handy. 

Absolutely agree.

Much the better all round for sister to keep the brother "on board" and in a decent relationship with her - because she's been fair to him. The alternative is brother remembers/falls out with her for rest of their lives and, if he sees a chance to "take revenge" in any way - takes it.

Much better to have him kindly disposed towards sister/reasonable relationship between them and no risk of him "keeping an eye" open for a chance to "take revenge".

onwards&upwards

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

theoretica

onwards&upwards said:

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

Yes she will - whatever she needed the money for back then would cost a whole lot more now for equivalent benefit.  (New car, house deposit, new roof/boiler, living a year without income...)

zagfles

onwards&upwards said:

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

Of course she'll have seen that rise! Do you not see inflation? Is it invisible to you? Money is now worth less now than it was in 2003. The £17k she got in 2003 would have bought more than now. If she'd invested it, she'd have got interest/dividends/growth. If she used it to pay off debts, she's saved whatever interest she'd otherwise have been charged on the debt. If she bought something with it, it's likely that thing will now be more expensive because of inflation.

However you look at it, she benefitted from getting money earlier.

onwards&upwards

theoretica said:

onwards&upwards said:

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

Yes she will - whatever she needed the money for back then would cost a whole lot more now for equivalent benefit.  (New car, house deposit, new roof/boiler, living a year without income...)

I mean in her own available funds. 

No savings accounts keep up with inflation at the moment, and haven't for years. 

Unless people think she has a moral obligation to sell stuff to pay her demanding brother interest on a gift that was never even intended for him?

If I was in the brother's position I'd be deeply touched by my sisters kindness and generosity, not demanding more!

theoretica

onwards&upwards said:

theoretica said:

onwards&upwards said:

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

Yes she will - whatever she needed the money for back then would cost a whole lot more now for equivalent benefit.  (New car, house deposit, new roof/boiler, living a year without income...)

I mean in her own available funds. 

No savings accounts keep up with inflation at the moment, and haven't for years. 

But she didn't put the money in savings - 'she needed it at the time'.  And hopefully her wage has gone up by inflation so £8500 now would mean less to her than it did back then.

onwards&upwards

theoretica said:

onwards&upwards said:

theoretica said:

onwards&upwards said:

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

Yes she will - whatever she needed the money for back then would cost a whole lot more now for equivalent benefit.  (New car, house deposit, new roof/boiler, living a year without income...)

I mean in her own available funds. 

No savings accounts keep up with inflation at the moment, and haven't for years. 

But she didn't put the money in savings - 'she needed it at the time'.  And hopefully her wage has gone up by inflation so £8500 now would mean less to her than it did back then.

Lots and lots of people's wages haven't risen in line with inflation for years.

Socajam

MalMonroe said:

Socajam said:

I would tell the brother he either gets a loan from the bank or wait until the parents die
Right now it's the parents money to do as they wish and it seems as if his greed is getting in the way of rationale thinking.
I wish parents would stop telling children that this is yours when I die etc. It only creates a lot of problems later on when the greed sets in.
He in not entitled to any interest because it was not his money, it was their parents money and until or unless they ask for interest, the brother can go take a hike.
Your partner is enabling him by agreeing to this, tell them to stop and no more talking about it. 

How is it his greed? He got NOTHING in 2003 and now HE'S the one in a financial bind. 

You're taking things a bit too far here, as well, telling the OP to tell their partner what to do!!

Tell me how he is entitled to interest?  Greed is what is killing the human race and will continue to do so until greed wipe us out.
He is looking at it as an eye for an eye.  What happens if the parents cannot afford it this time to give him this money that he is not entitled to.
No child is entitled to any inheritance and this is one of the biggest mistakes parents make by telling children this is all yours when I am gone - hence the murdering of parents to hasten their so-called entitlement.
It would not surprise if this was festering in the brother for the longest and he was looking for a way around this.  What makes this even more diabolical is that he wants interest from the time the OP was given the money - read between the lines.
If the parents are able to make a decision, I do not think the OP should give the brother the money because the OP does not know how the parents feel about this.
This is going on assumption that the parents are ok.  What happens if later on money is needed for care home etc, should the taxpayer foot the bill when the parents had their money in place to do so?

zagfles

onwards&upwards said:

theoretica said:

onwards&upwards said:

theoretica said:

onwards&upwards said:

Is anybody else really surprised by how many people think the sister should adjust for inflation?
She's not a financial institution!  She won't have seen that rise herself. 

Yes she will - whatever she needed the money for back then would cost a whole lot more now for equivalent benefit.  (New car, house deposit, new roof/boiler, living a year without income...)

I mean in her own available funds. 

No savings accounts keep up with inflation at the moment, and haven't for years. 

But she didn't put the money in savings - 'she needed it at the time'.  And hopefully her wage has gone up by inflation so £8500 now would mean less to her than it did back then.

Lots and lots of people's wages haven't risen in line with inflation for years.

Most peoples' have. Virtually no-one's wages will be the same as 2003. Average wages since 2003 have gone up by more than inflation.