ILs “gifting” home

Was about to say but someone else has said it above- they are just going to be clobbered with a huge inheritance tax bill when the in laws pass. And if they split up, Dsis has zero right to stay in the family home. They aren’t about to turf their son out are they. For all of sister’s savings you don’t know what’s around the corner. Her earnings could take a massive hit (likely if they start a family) and house prices could skyrocket. If the relationship ends she could find herself homeless with not enough to buy something for herself, and what about the marital assets? The house is out of the equation and HE could even have a claim over HER savings/property.
Far too risky when they have enough to buy for themselves. In a marriage finances are shared, that’s the deal you enter into. This is not sharing finances because even if your sister benefits from it initially he will always benefit far more from this arrangement.

There’s also a sense of pride in doing it for yourself and no idea what the in-laws would expect in return. Huge gifts are rarely without strings IME….

Do your sister and her partner get freedom to choose the property, or will the in laws choose one?

Is the budget enough for a suitable property to be bought?

Will the in laws try and influence the location of the property, or is there freedom to choose this?

Can they decorate how they wish?

I had this conversation with my mum as some friends of hers owned their son and dils home. They might not have been as wealthy as your sisters ILs though. I said I'd be fine as the child in that scenario but not the in law. One major consideration is that you don't know the inside of the PILs marriage. If they divorce could you (your sister) lose the house?
Also I like my inlaws, but I'd go off them quickly if I felt indebted like that. I want to invite people over out of joy, not obligation. I'm pleased to be an adult with a home if my own / our own, not dependant on inlaws. Even though I'm obligated to go to work!

Why not try it? Live there for 3-5 years and save like mad. Once she has enough she can buy a place of her own and move in or rent it out. Just because she lives there for a bit doesn't mean she has to live there forever.

I would bite there hand off and save my money for an investment property to leave DC.

Except they're advising buying an investment property....so she'd still have a mortgage but on a house she isn't living in with, presumably increased cost die to then being a landlord....

This makes zero sense from an inheritance tax point of view, apart from anything else. I am presuming given their wealth they will be above the threshold and when they die, then unless they are also leaving a shitload of cash / insurance policies to pay the tax bill, you’ll find yourselves inheriting a house that you have to sell or mortgage to pay the tax bill on. Bananas.

I agree it seems very controlling by the IL's. I'd feel very uncomfortable about it and would want my own chance to climb the property ladder and earn some equity.

I'd stick it in a trust instead if I were them. Make the son the life tenant, with it going to children when he dies. That would protect it in case of a divorce.

I'd feel happy to live in a property held in a trust on behalf of my husband, but would feel a bit weird living in a house that my PIL were still the owners of.

Sounds lovely in theory but I wouldn't do it if I could afford to buy myself. If they want to make things equal with the other children they can put money in trust for their DS or future grand children but I wouldn't want to live in a house owned by my PIL with contracts etc in place should I fall out with their DS.

I wouldn't touch it with a barge pole to be honest.

She'd be forever living in someone else's house rather than her own.

And also, look how many MNet threads there's been over the years where inlaws use their money to control.

Inlaws paying for properties or private schooling very often causes problems down the line, when they think it gives them a say in things.

I'm with your sister. Who is responsible for the upkeep and if it's not the ILs then why should she put any money into a property she doesn't own?

It feels very controlling by the ILs.

Who pays for repairs etc?

Can you put in a good word for me with the other two?

Any unmarried IL children?