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In 2013 my wife & I bought our house.
We were going to get a mortgage however my in-laws gave us £150k rather than pay it back at higher rates on a mortgage.
After then the in-laws changed their will to show that they had given us £150k and made their wills to show that their son would receive £150k and their other daughter £150k from the estate before any remaining monies are shared between the 3 siblings once all inheritance tax paid.
My in-laws were concerned about inheritance tax needing to be paid on the £150k they gave us if anything happened to them.
They were also concerned that they were losing interest on that money in the estate since gifting it to us for the mortgage.
So in the beginning we started making payments to the in-laws totalling £ x.
Then in 2019 as the 7 years since gifting us the £150k the in-laws said that instead of making payments to them that they wanted my wife & her sister (2 of the 3 siblings) to open a separate bank account and we would then put the money equivalent to interest on the £150k into this new account and that it would be a fund for the in-laws 3 grandsons. Since 2019 we have put £15k into this account.
My queries:
Now please note there is no issue in the family around inheritance and the whole family get on great - the issue is my father in laws mind is not what it was and he is asking us to continue payments into the new account as he says that it is interest lost on the £150k he gave us to buy the house - (his rationale is that if the money hadn’t been gifted then it would still be in the estate earning interest) - however as this is not going into the estate are we out of pocket ultimately.
My father-in-law at the beginning stated that he didn't want to be out of pocket however it was years later in 2019 that he changed his will to ensure the other siblings received the same amount...
I’m not a finance guy so maybe I’m missing the obvious but as the money was gifted and provision made in the in-laws will to ensure the other siblings get the same - should we be paying ??
The in-laws are saying that because in 2013 £150k is worth more than it is today so they are thinking of increasing the other siblings inheritance which is fine with us but should we still be paying into this new bank account.
Thanks in advance
We were going to get a mortgage however my in-laws gave us £150k rather than pay it back at higher rates on a mortgage.
After then the in-laws changed their will to show that they had given us £150k and made their wills to show that their son would receive £150k and their other daughter £150k from the estate before any remaining monies are shared between the 3 siblings once all inheritance tax paid.
My in-laws were concerned about inheritance tax needing to be paid on the £150k they gave us if anything happened to them.
They were also concerned that they were losing interest on that money in the estate since gifting it to us for the mortgage.
So in the beginning we started making payments to the in-laws totalling £ x.
Then in 2019 as the 7 years since gifting us the £150k the in-laws said that instead of making payments to them that they wanted my wife & her sister (2 of the 3 siblings) to open a separate bank account and we would then put the money equivalent to interest on the £150k into this new account and that it would be a fund for the in-laws 3 grandsons. Since 2019 we have put £15k into this account.
My queries:
- we have paid back x amount prior to 2019 of the £150k - does this means that ultimately we lose out as we have paid back some of the gifted money ? The 2 other siblings still receive their full £150k.
- The £15k in the new account has been funded by us and NOT the other siblings for use on all the grandchildren.
- If the interest on the £300k that is going to the other siblings equals £30k then upon the will being paid that £30k will be split between the 3 siblings so £10k each HOWEVER we have paid £15k into the new bank account for the grandchildren fund so ultimately we are £5k down….
Now please note there is no issue in the family around inheritance and the whole family get on great - the issue is my father in laws mind is not what it was and he is asking us to continue payments into the new account as he says that it is interest lost on the £150k he gave us to buy the house - (his rationale is that if the money hadn’t been gifted then it would still be in the estate earning interest) - however as this is not going into the estate are we out of pocket ultimately.
My father-in-law at the beginning stated that he didn't want to be out of pocket however it was years later in 2019 that he changed his will to ensure the other siblings received the same amount...
I’m not a finance guy so maybe I’m missing the obvious but as the money was gifted and provision made in the in-laws will to ensure the other siblings get the same - should we be paying ??
The in-laws are saying that because in 2013 £150k is worth more than it is today so they are thinking of increasing the other siblings inheritance which is fine with us but should we still be paying into this new bank account.
Thanks in advance
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