To ask for a set portion of the inheritance?

[Maria53]

Hi everyone, about 6 months ago I posted about the fact my dad said he wanted to buy me a flat with the massive inheritance he received from his father. The overwhelming response from mumsnetters was to accept but I have felt a lot of uncertainty around it.

Just for a bit of background I wasnt close to my grandfather. He had a fairly tragic start to his life that I wont go into. I think in the end he felt bad that we never really had a relationship and gave the majority of his inheritance to my father with the understanding that I would see some of it.

Today my dad brought this up, saying 'it doesn't have to an amazing flat that you buy, but at least something simple you can do up'. What does that mean exactly? I would much prefer that he simply gives me a fixed sum of the inheritance that he thinks I should have. Then I can get on with looking without him becoming a big part of the process and possibly wanting a say in what I go for.

Do you think that seems like a fair request?

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It depends on the area. To me not amazing is average. So look up the average price in your area and tell him that is the band you will be looking at. Ask him if he will be providing that level of funding, if if you should adjust your search

Is he offering to buy outright or just cover the down payment. If it’s the down payment, what you can afford in monthly payments can be your guide.

I think, only think btw, that he means don't pay top price/ full dollar. Be prepared to buy something cheaper that maybe needs some work,
That does make sense because at least you will make some money doing it up.
When the recession hits there's likely to be lots of repos and house price slump.
I'd wait for a while and get something cheaper.

Parent-to -offspring money gifts are taxable beyond £3,000 per annum. Anything more than that will get taxed.

Not if, as in this case, it's an inheritance which is passed to the next generation within a certain period.

If you’ve never read it before, read Sense and Sensibility, the part quite early in the book where John & Fanny Dashwood discuss how much of their inheritance they should give to his stepmother. This is your Dad’s mindset explained.

If I were you, I’d look around for a few suitable flats, and get an average price, add two or three thousand for fees, costs etc and tell him the amount you need.
I wouldn’t buy one that needed a lot of work, because he would probably be reluctant to foot any bills, and you would have to find the money yourself. Also it can be very disheartening living in a building site for months.

You need to have a clear idea of costs, in case your Dad offers you a sum that is unrealistically low. This will be a really good start in life for you, so don’t turn it down because you don’t think you are worth it or you weren’t very close to your Grandfather. This is your chance to improve your life in one leap, and I’m sure your Grandfather would be pleased to be able to help you to do that.

OP it all depends on how much your father inherited, where you live and what is reasonable or amazing in your eyes.

I think I would be up front and say how much is this sum. I would then start looking to find the flat you can afford and easily rent out.

You need more of an idea of budget from him. Remember most flats are leasehold so check the length of lease left to run, any management charges, legal fees etc. How much will it cost to do up?

Depending on where you're buying a small 2 bed terrace which you own outright may be a better long term option and possible to rent out, have a lodger or live in.

Ask him what he would think reasonable for a good flat

If your grandfather had wanted you to have money he could have left it to you directly - and he didnt.

You have probably never bought a property and your father has, only a fool would not listen to advice from someone with more experience.

He doesnt have to give you a penny - so find some flats you like the look of then take him with you when you go and see them.

Parent-to -offspring money gifts are taxable beyond £3,000 per annum. Anything more than that will get taxed. So maybe he wants to actually purchase the flat himself (putting your name on the title deeds) rather than incur a huge tax bill.

That isn't true.
Gifts are not taxed
Of he does within 7 years they will form part of the estate for inheritance purposes.

Buy a flat he approves of, live in it for a bit, then sell it and buy one you want?

Is your df actually buying you a flat to own/live in or buying a flat for you to live in? Why did your dgf not just leave you it directly?

@Teenangels I agree much easier. Less confusion.

Sounds like he thinks you might not spend the money on a flat but on other things he sees as not as worthy.

Ah @Healthyandhappy you are right, it really does depend where OP is based - this is the cheapest thing you can buy in our whole postcode area: Studio for £289,000.
OP - pick a flat you like and bring your Dad the details and say - Are you happy to fund this? That will let you know.

I don't understand why your Grandfather didn't just give you a sum to buy a flat if that's what he intended instead of going through all this nonsense

As some have suggested, I would find a nice flat, give your Dad the details and ask him if this is acceptable. if says no, then ask him what IS acceptable.

Is the flat going to be in his name or your name?

I'd just say or message him to say 'I don't want this inheritance to become awkward. To avoid any mix ups, please could you give me a budget of what amount you would like to pass on to me. This would really help me when looking for somewhere so I know what areas I can look at.'

Find a flat you like then send him that along with a couple more expensive ones and ask him to help you choose - he’ll choose the cheapest flat, which just happens to be the flat you like

Yup- I used to do this as a kid. I'd ask my parents for something I knew they'd never get me as it was too expensive and then act disappointed then i'd ask for something else instead when that was the thing I wanted all along. I was a very precocious child lol

150k for a flat is a lot!

Not here it's not. And in London, it's really not.

The easiest way to avoid any future tax implications is for the solicitor dealing with the estate to draw up a " deed of variation " bequeathing whatever the sum agreed is directly to you from the estate rather than via your Dad.

There may still be inheritance tax to pay if the estate was sizeable but that could only have been avoided by tax planning done before death.

I would recommend, in any case, that the flat is in your name. Lots of potential issues if it stays in your father's name.

Just ask him outright how much he wants to contribute, that way no one is disappointed and you know what your budget is.

Are you reading too much in to this...and what difference does it make if you were not close to your grandfather?
Has he really indicated that he would be involved in the purchase as that is what you seem to fear?
Once you have sorted this issue with plain speaking to your father, check the legalities of purchasing something with gifted money and any implications.