First time poster but long time lurker
Please could some of you clever mumsneters help make sense of this situation
2 years ago FIL sadly died. Due to the way the house was owned, this passed to MIL despite them being divorced for 20 years and her never having contributed to the mortgage (they basically bought it and divorced, he continued paying the mortgage). It was expected that the house would have been left in entirety to DH, BIL and SIL but we weren’t particularly shocked or upset by how it transpired.
MIL did not want the house however as she has a lovey council house on the outskirts of London. She is nearly retirement age and therefore wants her rent paid for this and to stay there. She also has circa £50k debt that she pays at £1 a month through debt management. She did not want to have to repay this due to receiving the house.
Anyway, she decided to rent this property out for approx £1k/month. She has not declared it to debt management company.
As is quite typical of this family, 18 months ago a big argument occurred and DH and myself are now the proverbial black sheep with MIL, BIL and SIL not speaking to us. I’m fairly happy with this situation as they have repeatedly hurt DH and are generally quite a nasty and feuding family, I think it’s better for our mental health that we stay away from them.
Anyway, I received a phone call from the long term partner of SIL as there have been more family rows (surprise surprise). In anger towards BIL, he has let slip that the house has been transferred over to BIL and SIL in trust so that MIL does not have to pay debt.
He tells me that DH, BIL and SIL are beneficiaries of the property when MIL dies but she will continue drawing the rent until then. The house is also up for sale. He says that if it sells, BIL and SIL will reinvest as they see fit.
BIL and SIL had originally intended to borrow £25k each from the property but were unable as they declared there was 3rd party interest in the property (DH) and so the mortgage company would not lend against it.
Does this sound dodgy to you? MIL and I fact whole family except DH have a long history (and a criminal conviction) of benefit fraud and general financial dodginess like illegal subletting.
Can you just give away property to avoid paying debt?
Can you make someone a beneficiary of a trust without informing them?
Can you still claim rent if you have transferred the deeds over to someone else?
Can trustees just sell the property without telling DH?
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AIBU?
To think this sounds like financial jigery pokery
12 replies
Pungifries · 03/04/2019 12:40
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