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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To say this to FIL?

56 replies

MushroomMagee · 12/05/2012 17:48

I have no idea whether IABU or not, I think that my view is possibly clouded by past events so I wanted a few opinions... Sorry if its long - there is a bit of a back story!

FIL is extremely rich (think cash+assets 10mil at least) he is also very manipulative, controlling (and he uses his money to try and do this) and extremely secretive.
We have had issues with him before, a year ago he offered us some money towards our wedding and then several months later when we had spent it, demanded it back because we decided to do something he didn't agree with. He also at that point said if we didn't go with what he said he wouldn't come to the wedding etc etc.
He used to help us out a bit financially and honestly it was the most stressful period of my life - he used it as a stick to beat us with constantly, and attempted to control the decisions we made. Even now, he wants a lot of info on our finances which we are not prepared to give e.g. how much our rent is, how much we earn etc.
He also has rather toxic views in regard to women, he thinks they can't be trusted and are all basically gold diggers. He behaved rather appallingly towards my MIL (they were unmarried) when they separated a few years ago. He has in the past when helping us financially refused to have me in the room when discussing it (despite it being obvious that I would at some point have to know!) and other similar things. To cut a long story short - I'm not his biggest fan.

Here's the tricky thing. He wants to put some money from a trust fund into an account for DD (who is 2.10). It would I imagine be quite a substantial amount each year, probably around 7k or so, and he would use her tax allowance in doing so. He says he would like this to be used for her benefit for things like swimming lessons, school trips or school fees at a private school etc rather than as a savings account for when she's older. I don't know but I suspect he may have set one of these up for her already. Obviously, DH and I would have to sign off on this one as we would be the ones that had to sign the tax return to let him use her allowance.

The issue we have with it is that he wants to be the signatory on the account along with DH. So anything that came out of it would have to run past him. The idea of having to ok the decisions we make is frankly rather repulsive, as is the idea that we would use it for anything other than her best interests and so need to be checked up on by him. I think it also puts us in a very vulnerable position, imagine dd is doing termly music lessons or something, FIL falls out with us and refuses to sign off on the money - how would we explain that? I think DH and I wouldn't be able to use the money and would have to just leave it in the account. Is that selfish though? Should we get over our own awkwardness for DD's benefit? And whilst we can pay for bits and pieces the money would no doubt be of great advantage to her.
My other thought is that if we are going to just leave it in the account then I would really rather just not accept it - it will still feel as if we are entangled with him then, and I worry that if something comes up (expensive trip, private tutoring if she's behind or something) we'll be tempted to try and use the money and I find the idea of going to FIL like that unbearable. Ultimately when she gets to 18 or so, I really doubt she will have any trouble financially - but who are we to deny her a rather large lump sum?
FIL has a very warped view of what would be to DD's best advantage - private school fees would be fine, swimming lessons or music lessons I imagine we would have to fight tooth and nail for.

I'm kind of thinking that we should say to FIL that if he wants to give DD the money that would be very appreciated and we will use it for things which will give her the most benefit but that we need to be the signatories on the account. Otherwise to pay the money into his own account and use it to buy her what he see's fit. AIBU?

OP posts:
AdoraBell · 13/05/2012 00:54

YANBU

You definitely need to be the counter signatory with your DH

My FIL is also a -women and finance don't mix type, takes OH aside to talk about money, always excluding me. I find it laughable really and refuse in turn to tell him about our finances. So, if I were in your position I'd tell him to shove his money where the sun don't shineGrin but that 's just me, I fecking hate money

Ambersivola · 13/05/2012 14:31

MushroomMagee

If FIL is giving DD an 'income' is he naming her as a dependant for his tax purposes?

I believe any asset or financial help you give to anyone is treated as a 'gift' and can attract IHT if FIL dies early. I think it would be quite difficult for HMRC to track anyway. You don't give HMRC the bullets to shoot you with - do you?

WhereYouLeftIt · 13/05/2012 14:58

"Obviously, DH and I would have to sign off on this one as we would be the ones that had to sign the tax return to let him use her allowance."

You know, given FIL's track record on tax evasion, I'd be reluctant to become entangled in anything involving him using someone else's tax allowance.

Ambersivola · 13/05/2012 17:35

Quote: Obviously, DH and I would have to sign off on this one as we would be the ones that had to sign the tax return to let him use her allowance."

Quote: You know, given FIL's track record on tax evasion, I'd be reluctant to become entangled in anything involving him using someone else's tax allowance.

How does that work then?

I have a personal allowance - how can I also use my Grandchildren's allowance for their sole benefit? Is there information about this sort of Tax Avoidance anywhere?

DizzyKipper · 13/05/2012 18:28

It seems obvious he showed quite early on in your relationship that it was best not to accept money from him. On a much MUCH smaller scale we learned this with MIL - she wanted to give us £500 towards our wedding but then started making demands about who she wanted to go to the ceremony etc. We refused to accept any money from her when we eventually got married. I think this is a lesson you should have learned already. Yes it would be nice for your child to have this additional money but not having it really isn't going to ruin her life. Don'tmindifIdo had a good suggestion - let him know the account details and he can put money in there if he wishes, but you and your DH are signatories.

BabyDubsEverywhere · 13/05/2012 18:52

Personally i would accept it, only use it for school fees and fund everything else yourself, anything left over, if anything after school costs will just build up until DD can take it herself as an adult. This way there would be no need to go cap in hand for 'extras' (swimminge etc) fund them yourself as you would anyway, and you say he would be happy to pay for school fees, so he wont moan about that will he?

Its about managing expectaions a little i think; yours in terms of what you can spend cash on, and his in terms of how much control he has over his gift. If you clear this up and keep it very simple at the start then theres no reason for there to be any problems and your DD will benefit greatly. Smile

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