gift inheritance

[radiogaga]

my partner's mother is gifting him the family home, and shes talking about protecting it so if anything should happen in the future ie, we split up (unlikely) i wont be able to claim the property as its a gift to him.,.not that i would as thats not my style.
now these are her words, i havent a clue regarding legal issues or family law. am i right in feeling insulted as we are very happy together and cannot imagine ever parting. or am i taking this personally?

[Whickerman]

You are probably over reacting just a little, but yes, it's human to be a little hurt, so don't worry about that part.

What she's doing is common enough practice. Look ahead - how would you feel if the house you're in, that you spent your family life in, saw your kids grow up in, loved in and possibly died in, was lost to a divorced ex-partner of one of your kids? Although in your case this will never happen, she's just looking after her son. Try to see that for what it is, and not take offence, she's just doing her best for her family.

[radiogaga]

thank you

[Beanmistriss]

Agree with Whickerman. Also most people who are married can't imagine ever parting but it happens. And when it does, alot of people turn very nasty, especially if things don't go their way. I'm not suggesting for a second that you would be like this. You know in your head what kind of person you are. Unfortunatly your mother in law cant see in there so has no gurantees that you won't suddenly be after all you can get.

[jake-the-peg]

On a slightly different tack - she'll need to make sure she's taken proper legal advice on this.

If she just signs the house over to him and continues to live in it the tax man will decide that's she's continued to "derive benfit" from the house and it'll still be liable for IHT.

It's a complex area these days and the old tricks don't work any more.

[Pippa68]

Will the house be lived in by yourself and your partner?

It may get a bit dodgy later on if you live in the house, are married & have children...not to mention the fact that you would be living there and helping out with bills etc. Is it her plan to make you a lodger or tenant?

As has been said, it is probably more complex than she thinks.

[Beanmistriss]

I didn't think of that Pippa. Thats a very good point!

[radiogaga]

hi i'll fill in the gaps, were not married yet, and have a child. we live in scotland so we're classed as common law man and wife.
mother in law will be moving to another house, she's transferring the house into his name, and we'll be paying a morgage, bills etc together.

thanks for prompt replies!

[Pippa68]

Hmmmm...not sure about Scottish law, however as you have clarified the situation and that you have a child, plus the fact that you intimate you may get married...your partners mother may be disappointed in her quest if you do decide to split later on. As the mother of his child he will have to help provide a home for you both if the worst comes to the worst, even if it means selling the home and providing you with a share.

Of course this needs to be thought about ~ and I understand your issue with her plan..it is rather insulting considering you do have a child together. What does your partner think about it?

[Beanmistriss]

So shes not really gifting it to him then, shes selling it to you both which is completly diffirent. I thought you ment she was just saying here's the house son, help yourself. It would seem a bit odd if they expected you to pay bills, mortgage etc then leave with nothing if you split up.

[Pippa68]

That's exactly right, Beanmistress. In fact there would be nothing to stop your partner putting your name on the mortgage too, radiogaga..if he wants you to be protected too.

[Pippa68]

Ooops ~ big apologies for speling your ID wrong! xx