I am getting bad vibes
Discussion
Cogcog said:
We have an offset mortgage, we had been in the black with it has with the FiL's cash we were completely offset, without it and the £35k we are back in the red and paying interest.
So you are already holding the "inheritance" and he has had an advance on this?So 80K + 35K from the cash his father gave you.
You just need to be careful that when the end comes for his father you and your mrs aren't seen to owe his estate the full amount so he can get the cash again.
He sounds like a bit of a cock and, ultimately, it's up to him what he does.
Cogcog said:
He is entitled to half of his Dad's money when he passes, some of which is on my house so the £35k is part of that capital. He has had £115k now so there is about £60K left in his half of the estate. We have agreed that Dad in law will change his will before they marry leaving it all to my wife, and that then we have a bit of capital up our sleeve for him if it goes tits up. Brother in law doesnt know this yet as we have been cautious about suggesting this may not work. He is extra vulnerable as she has a disability so it it goes tits up with her having 3 kids, he will be living in a tent as she will get the house (no mortgage).
Um, yeah, there's absolutely no way this could go horribly wrong.What if dad in law gets hit by a bus before they marry, then what?
Cogcog said:
I am in four minds;
1) he has a new, happy and busy life and can't fit it all in
2) she is cutting us off from him and others (possibly insecure?)
3) he has become a knob overnight
4) I need to take a chill pill and be more supportive
Which is it?
It could be a combination of all of those, but whatever the mix No. 2 features heavily. Your subsequent posts make it sound pretty bad though.1) he has a new, happy and busy life and can't fit it all in
2) she is cutting us off from him and others (possibly insecure?)
3) he has become a knob overnight
4) I need to take a chill pill and be more supportive
Which is it?
Can't blame him too much for cutting off his old step kids though, you said he'd been around long enough for them to consider him Dad, but their mother had no intention of making it a permanent arrangement.
Significantly, they have a new baby, and that's a massive drain on time and energy, which may be a factor in how things appear from your PoV. How old are his new step kids, 3 younguns can be a real handful? It may be that he's quite happy with this apparent under the thumb situation, and they'll stay together for ever. Or she could try and boot him out in a couple of years time, which'll end badly, but possibly not as badly as a more traditional couple.
Get FiL to change his will asap. Otherwise it's one of those things that'll get forgotten until it's too late. And the longer
FiL leaves it, the more likely he is to mellow to leaving it unchanged. Good idea to change it to leave everything remaining to you missus, just don't let BiL get wind of that.
Also, sounds like he'll be coming for another advance on his inheritance to pay for the wedding, how is that going to work if the will has already been changed?
Does FiL have a legal share of your house, or did he just sell up and move in with you and transfer all his cash into your offset mortgage? Could be an IHT minefield, even without the BiL factors. I guess it'd be viewed as him lending you that money interest free in lieu of paying you rent to live there?
desolate said:
red_slr said:
Is there any chance dad may die in the next 7 years... because if the answer is yes I see a lot of bother ahead..
Plus changing the will makes no odds really if he wants to be difficult.
Not on the amounts quoted surely?Plus changing the will makes no odds really if he wants to be difficult.
desolate said:
DonkeyApple said:
If they form part of an estate which is taxable then there would be a tax to pay on all of it.
The father lives with the OP and has put his cash into his offset mortgage.We could assume that the amounts discussed are the entire estate so no tax liability but we don't actually know. It would be uncommon for someone to gift their entire estate while alive but more common for people to gift in advance as part of avoiding hit on a larger estate
Either view could be correct but it depends on whether the OP wishes to clarify that personal information.
Edited by DonkeyApple on Sunday 20th November 22:17
OP There are clearly a lot of assumptions here about probate which may not stack up as you assume.
Your father in law should take proper legal advice about HIS money and what HE wants to do, and anyway what might happen even before he passes, which may at the very least affect what you call 'your' home.
Which leads to at least trying to see it from your brother in law's perspective, before you have him cut out of his father's will 'for his own protection' with your wife then later graciously gifting him his share if the mood takes, or whatever.
There is plenty in what you have posted to allow for him and his entirely reasonably concerned partner (let alone a psycho money grabber some would have it as innorder to side with a fellow PHer) to believe you think you know better about how he should live his life and with who, and that he and his father are being turned over by you and your wife.
Just something to consider.
Your father in law should take proper legal advice about HIS money and what HE wants to do, and anyway what might happen even before he passes, which may at the very least affect what you call 'your' home.
Which leads to at least trying to see it from your brother in law's perspective, before you have him cut out of his father's will 'for his own protection' with your wife then later graciously gifting him his share if the mood takes, or whatever.
There is plenty in what you have posted to allow for him and his entirely reasonably concerned partner (let alone a psycho money grabber some would have it as innorder to side with a fellow PHer) to believe you think you know better about how he should live his life and with who, and that he and his father are being turned over by you and your wife.
Just something to consider.
So given that his assets came from his marriage, he has a combined IHT allowance of £650k - not going to be any tax issues there.
However - you seem to imply that he owns half of your house - circa £300k worth? What are you going to do if he needs nursing care? The local council will want to know about his assets and if he has to go into a care home they will expect him to fund his own care. That's going to leave you having to buy out your FIL share of your property.
Strangely enough, from the info you've given I'd suggest that your BIL is going to be in a better position than your wife if their father does need to go into care because your BIL has been gifted his 'inheritance' already which will make it very difficult for the local authority to do anything about.
However - you seem to imply that he owns half of your house - circa £300k worth? What are you going to do if he needs nursing care? The local council will want to know about his assets and if he has to go into a care home they will expect him to fund his own care. That's going to leave you having to buy out your FIL share of your property.
Strangely enough, from the info you've given I'd suggest that your BIL is going to be in a better position than your wife if their father does need to go into care because your BIL has been gifted his 'inheritance' already which will make it very difficult for the local authority to do anything about.
yellowtang said:
So given that his assets came from his marriage, he has a combined IHT allowance of £650k - not going to be any tax issues there.
However - you seem to imply that he owns half of your house - circa £300k worth? What are you going to do if he needs nursing care? The local council will want to know about his assets and if he has to go into a care home they will expect him to fund his own care. That's going to leave you having to buy out your FIL share of your property.
Strangely enough, from the info you've given I'd suggest that your BIL is going to be in a better position than your wife if their father does need to go into care because your BIL has been gifted his 'inheritance' already which will make it very difficult for the local authority to do anything about.
You can't carry a a spouse's allowance forward post mortem?However - you seem to imply that he owns half of your house - circa £300k worth? What are you going to do if he needs nursing care? The local council will want to know about his assets and if he has to go into a care home they will expect him to fund his own care. That's going to leave you having to buy out your FIL share of your property.
Strangely enough, from the info you've given I'd suggest that your BIL is going to be in a better position than your wife if their father does need to go into care because your BIL has been gifted his 'inheritance' already which will make it very difficult for the local authority to do anything about.
IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
DonkeyApple said:
You can't carry a a spouse's allowance forward post mortem?
IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
No - when you die you can transfer your allowance. Married couple assests should get the benefit of £650k allowence.IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
yellowtang said:
DonkeyApple said:
You can't carry a a spouse's allowance forward post mortem?
IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
No - when you die you can transfer your allowance. Married couple assests should get the benefit of £650k allowence.IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
DonkeyApple said:
yellowtang said:
DonkeyApple said:
You can't carry a a spouse's allowance forward post mortem?
IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
No - when you die you can transfer your allowance. Married couple assests should get the benefit of £650k allowence.IH between spouses is not tax liable but anything greater than £325k to a non spouse is liable. So, if his entire estate is £300k then no issue, but if it's £600k then there is a potential 40% liability on the £275k balance.
Anyway, it doesn't look like tax is going to be as issue for OP here.
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