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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To let in-laws give us a LOT of money?

153 replies

maltharders · 18/01/2019 15:27

My DH's parents are on the wealthy side of middle class but he has never really been superspoilt, although they helped a lot when he was at uni and bought him a car when he was early 20s.

Since then we've always been very independent, we're very early 30s, two young kids and renting while saving up a deposit to buy a house.

They recently said they want to give us a heap of money (amounts to about 50% of the value of a nice house) because otherwise it's just going to sit there and we'll inherit it when they die and we won't need it so much by then. My DH says that's aa logical argument and so we should accept, but I feel a bit bad about taking so much money. My own parents never had much money so have never given us anything.

AIBU to feel a bit weird about it? Even though I see the rationale behind it?

OP posts:
Hauskat · 19/01/2019 18:26

If you don’t take the money now you will pay a lot of it in death duty. The only reason I wouldn’t take it would be if the relationship wasn’t good and you felt it would be used to manipulate you or if there were strings attached. If not then do take it! They want you to have it and not many people manage to get on the property ladder without some help. I’ve had some!

user1471453601 · 19/01/2019 18:46

Giving money away has turned into a bit of a tradition in my extende d family. About three months before she died, Mum gave us all an amount of money each Grand children and BIL include d). Her only stipulation was that we each spent the money on something g,and not let it get swallowed up into general expenses.

I gifted my house to DD and her partner (we all live together). My stipulation was that they handled any repairs/improvements. Happy to pay my share,but don't want the hassle of arranging it.

DD partners sister recently gave her a substantial sum of money (tax reasons). No stipulations involved.

I sometimes think that people don't always appreciate the pleasure that giving to someone you love gives to the person doing the giving.

Opening poster, if your parents in law are not putting unreasonable strings on the the gift, I would say, take it. Yes, you are lucky, but don't underestimate the pleasure it will give your PIL

Itshardtofindausername · 19/01/2019 18:48

You sound like a lovely person and I can understand why you are hesitant as I'd feel exactly the same if my in laws made that kind of offer.
Accept the kind gesture as your in laws say it's just going to sit there when you can use it and get yourself on the property ladder.
Maybe take your in laws out for a nice meal as a bit of thank you. 💐💐

quizqueen · 19/01/2019 19:04

I have only read page one of this thread so don't know if anyone else has said this a) get it in writing that it is a gift b) what will happen in the event of a separation/divorce? Will the amount be ring-fenced for your partner or is a joint gift, regardless of what happens in the future? c) if your partner died young, would the equity in the house be yours or the children's especially in the event of you moving another partner in (and who possibly already had children)? d) Would they expect you to care for them in their old age? All points be considered.

constantreader · 19/01/2019 19:11

I'm sure that your in-laws have the best intentions for you and your DH. This happened to me and my STBXH however - his parents gifted us his inheritance so we could purchase a property. I had misgivings about accepting a large amount of money but was basically told that it was happening and I was to accept it....

Now we are divorcing (thankfully!) and he is claiming that the money was a loan. Obviously no loan agreement was in place as it wasn't a loan but he's currently fighting to try to recoup all the money, which will essentially make me and DC homeless, if he wins. He's an awful human. He's even managed to make his parents sign an affidavit stating the money was a loan and they want it repaid. They will now be cited to court to swear that this is the case and they will be lying. I would NEVER have agreed to taking out a loan of that size and well he knows it... but here I am now stuck in this battle.

I'd advise strongly that you get some form of legal document stating exactly what the money is - a gift. I would never have guessed that my ex and his parents would go down this route at all, so just protect yourself.

Tistheseason17 · 19/01/2019 19:22

I hope to be able to help my DC one day.

You are not a CF - just say thank you very much and invite them to the housewarming.

londonmummy2 · 19/01/2019 19:23

How much money @maltharders ?

50% value of a nice house could be anywhere from £150k up north somewhere or £750k in London...

Need to know the detail!

Justajot · 19/01/2019 20:03

We've had cash/inheritance from both sides towards our house. There have been no strings attached, but I think that there is the unspoken expectation that we won't be profligate and, if we can, we will save up to do the same for our DC. I'm absolutely fine with both of those.

BrokenWing · 19/01/2019 20:10

Totally depends on the dynamics of your relationship with them and if it is 110% no strings.

How would they feel if you and your dh decided to sell the house in a few years and spend the money on 3 years travelling.
Or if you divorced.
Or if your dh died.

Are they expecting a contract to have part ownership of your home. Are they the type to expect to have a say in your life bought with their money?

If there was ANY chance of it interfering with your independence to make your own life decisions, I'd say no.

Thewarrenerswife · 19/01/2019 20:13

My sister and I are currently in the middle of selling the home we grew up in to pay for our Mums care. She had two strokes last November and is now in a nursing home. She worked her whole life after our Dad died when we were young. She paid her taxes and lived a very frugal life to give us all we needed and buy her home outright. And now, because she did that, because she owned her own home, she must now sell it to pay for care. I tell everyone I know... if you own your own home, put it in trust, gift it to those you love! Whatever you do, don’t think that the government will reward you for working and saving, because they won’t. They’ll take it from you so they can continue to support those who haven’t worked hard or saved. Take the money, they are doing the right thing.

anniehm · 19/01/2019 20:26

Take it, they wouldn't have offered if they didn't want to. Just honour them by using it wisely and do check if there's any strings etc. My parents gave me money (nowhere near as much) our the blue this year - dh felt bad but they don't want it to just go on care (they are fit and well but 70£

Thewarrenerswife · 19/01/2019 20:48

My sister and I are currently in the middle of selling the home we grew up in to pay for our Mums care. She had two strokes last November and is now in a nursing home. She worked her whole life after our Dad died when we were young. She paid her taxes and lived a very frugal life to give us all we needed and buy her home outright. And now, because she did that, because she owned her own home, she must now sell it to pay for care. I tell everyone I know... if you own your own home, put it in trust, gift it to those you love! Whatever you do, don’t think that the government will reward you for working and saving, because they won’t. They’ll take it from you so they can continue to support those who haven’t worked hard or saved. Take the money, they are doing the right thing.

FridgeFullOfChocolate · 19/01/2019 20:58

I wouldn’t take the money personally. My in laws were lovely and perfectly sane up until we had children and then something changed. When we bought our house my husband persuaded me to borrow 5k from his parents to help with renovations, we already had a big deposit we’d saved and could have just used a bit of the deposit but he insisted and promised his parent’s would never hold it against us.

Our first child arrived and their behaviour turned quite interfering and pocessive over our child. When I wasn’t entertaining them interfering and visiting all the time the 5k was brought up, “how could you do this we lent you 5k, you wouldn’t have your lovely house without our 5k”.

Don’t do it as tempting as it is!!

policeandthieves · 19/01/2019 21:25

My parents did similar for us - not as much as 50% but substantial and we aim to do the same for our children. My DF has also put money in his will directly to the GCs as he reasons that by that time they will need it more than us.
It wasn't a loan and there was no expectation attached. We are a close family though.

Alpacanorange · 19/01/2019 21:35

If no strings ... and you get on well generally take the money.
What is stopping you ? Do you feel like they may imply you “owe” them ?
If no then accept that they are helping you by virtue of giving money to their son. Most parents would do that if they afford it.

littlebillie · 19/01/2019 22:57

That's kind and they will have pleasure is seeing you progress. Take they money and be gracious

Gth1234 · 19/01/2019 23:09

It's great. Thank them profusely, and enjoy.

On the legal side, Seriously, as long as they live 7 years, it avoids any IHT, if that matters.

fatimashortbread · 19/01/2019 23:22

It makes sense; it’s not the inheritance tax necessarily but it prevents the state taking the money for long term care so by taking it now you are ensuring the money is passed down

PBobs · 19/01/2019 23:52

Tough one. I think you have to know them really well and have clearly established boundaries and a strong, honest relationship. My friend's brother and his wife lived overseas, talked about moving back to the UK and his parents said they'd help out with a deposit. So they moved back to the UK but they were unhappy so they left again. Didn't go down too well even though his parents are lovely and the money was "no strings". On the other hand, my parents are beginning to offload assets and they are absolutely no strings. They know exactly what I want from life because we talk about all this stuff so there's no crossed wires. The being spoilt issue doesn't come into it because changing names on deeds or handing over cash makes financial sense - although be prepared for outsiders to think otherwise. And ignore them.

caringcarer · 20/01/2019 01:28

When i inherited large amount from my own dm when she died, we already had a nice house and a holiday home so after a lot of thought i gave my 3 adult children a generous amount each to put down as large deposit. My dd bought her house bit my 2 adult sons took the money but continue to live at home. I have obviously made them too comfortable. Parents love to give their children the best start in life they can. I would much rather give a gift and see my children and gf enjoy it now rather than miss it after i die.

BunsyGirl · 20/01/2019 08:11

You need to think about how you would feel if, instead of the money coming to you it went to the taxman. A family member of my DH recently died and £300k went to the the Revenue because he hadn’t done any tax planning. It’s not a great feeling, believe me. Take the money.

Dillydallyalltheway · 20/01/2019 09:27

This is similar to what is happening with me at the moment but different circumstances. Because I am really unwell and not likely to outlive my mum, she is dripping my sister and me Money from our inheritance so we can enjoy it now. It really does make sense if they have the inheritance and won’t need it for anything. I think it’s a lovely thing to do.

sonjadog · 20/01/2019 09:42

I´d take it, if you are sure that there will be no strings attached. My mother did similar for my brother and I. It gave me the chance to buy a house I loved that was a bit outside my price range and for my brother it gave him the chance to buy a property at all. As my mother said at the time, we were at an age where the money made a huge difference to us, while if we had waited and got it as inheritance, we would probably be past the age where the money was needed as much.

ChocolateWombat · 20/01/2019 18:58

I disagree with those who categorically say 'don't take the money' - I think those categorical comments are either from those whose parents aren't in a position to help them and basically resent anyone getting help, or those for whom taking a gift like this has gone wrong further down the line - but who fail to recognise that it can be great for lots of people, even if not thes,elves or absolutely everyone.

There is a something to be said for the recommendations of those who say something should be written down about the money being a gift. There can be value in writing down things about where the equity should go in the event of divorce/death, but I'd don't think it is necessary in all cases. Some parents don't gift money like this because they are concerned about divorce issues etc and want to ensure the equity stays with their child. If that is their feeling, and if the young couple receiving the money are happy for it to be given with these terms, then that's okay.

However, I think many who give, give to the family, not just to their immediate child. They give in the expectation that family will stay together and also that if they don't or someone dies, the family will be able to work out how it is shared out - so as they g ie the gift, they hand over the future of that money rather than wanting to lay out terms of what happens next. And I understand that - it really is then 'no strings' giving because if disaster strikes, it will be up to those in the younger family to decide exactly how to use/share out the equity/money, because by then it is THEIR equity/money and not that if the parents or inlaws. So I don't think it would be a failure of planning ahead to not get something written down about future use of the equity necessarily.

I do think the key is that everything has been considered and discussed so there are no misunderstandings. Although such conversations can be a bit awkward, they are important and worth doing when large sums of money are involved. So make sure it has been made clear if it's a gift or loan, and probably make clear if it's for a particular purchase such as a house or if it's a general gift to be used for anything the recipient wants. I'd also check if the gift is specifically for the child if the recipient or the whole family - and as that child, I might just point out to parents giving the gift, that if as child I died, that money would then belong to spouse and later to children - I probably wouldn't be asking if that was okay, as personally I would want to take a gift on the basis it was for us as a family and not just DH, but others might feel differently about that. Personally I wouldn't feel very happy about strings attached to the gift that a house could only be in the name of the givers child rather than both the child and spouse. It would seem a bit like a pre-nuptial agreement if terms are about the money only belonging to child if there was a divorce, although I can see why some parents might want to say that - but I think they'd have to accept if those were the terms, some people might choose to refuse it, because then it isn't becoming totally strings free. This might be fine if a gift is given to a child who is in a new relationship or an unstable one, but where a family has been established, givers of gifts really need to give to that family and accept the family will determine the sharing out in event of a crisis - when you hand the money over, you do hand it over and any responsibility to determine its long term usage is lost, as far as I'm concerned.

doyouneedtoknow · 21/01/2019 14:59

Very clever and very kind of them. Makes perfect sense