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Who's Not In Line To Inherit A Property?

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il get half a 200k (present value) house in about 25 years. When i will be 55.

Im hoping my labour will be my parents pension and their house will be mine

Edited by CHF

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Munro,

You've got me completely at a loss here.

In one thread it appears you are yet again on the 'boomer' generation thing, yet in another it appears as if you must actually be a boomer yourself???

Who exactly are you railing at - or are you looking in a mirror?

To be honest I think there's been some brilliant posts no matter which end of the spectrum. All adds to the fun.

Out of interest I mentioned a few posts back that I used to work as a legal sec writing the wills.

Once, when a man was in hospital dying, his three daughters appeared (who had come from all over the country) with elderly mother in tow. They wanted the will changing because Daddy didn't mean to leave all his money to Mummy, did he Mummy? He wasn't of sound mind when he made it. Could the solicitor amend it now to leave it between the 3 daughters please.

They sat in reception for a good 3 hours with the poor mother, who was about 80, squashed in between them and in absolute shock over her husband while the solicitor kept telling them to go away.

Then we got news about 3pm that Daddy had died.

Then they wanted Mummy to sign all the money over to them.

An interesting afternoon.

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Then they wanted Mummy to sign all the money over to them.

An interesting afternoon.

My neighbour looked like he was on the way out a couple of years ago. There had been family problems so I hadn't seen his kids since him and hos second wife moved in (10 years+). Suddenly when news got it his daughter visited with her family, and the son turned up with his and started helping out clearing up the garden. This lasted about a week. He got better. Not seen them since.

He liked the attention at the time but very much saw it for what it was; he's not stupid.

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My neighbour looked like he was on the way out a couple of years ago. There had been family problems so I hadn't seen his kids since him and hos second wife moved in (10 years+). Suddenly when news got it his daughter visited with her family, and the son turned up with his and started helping out clearing up the garden. This lasted about a week. He got better. Not seen them since.

He liked the attention at the time but very much saw it for what it was; he's not stupid.

It really does bring out the worst in people!

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If a person inherits money from the sale of a house and uses that money to buy a house then a house and a buyer are both removed from the market. Surely the net effect on the rest of the market is zero?

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Munro,

You've got me completely at a loss here.

In one thread it appears you are yet again on the 'boomer' generation thing, yet in another it appears as if you must actually be a boomer yourself???

Who exactly are you railing at - or are you looking in a mirror?

To be honest I think there's been some brilliant posts no matter which end of the spectrum. All adds to the fun.

That's because you are trying to apply labels to me, and finding they don't fit; which is why Tamara de Lempicka is wrong when s/he says funny how such threads degenerate into boomer bashing. By age I'm tail-end boomer, but as I didn't go to university until I was 30 - result of disasters in the parents' lives - my experiences are Generation X. We don't all fit neat boxes.

The point I think (?) I'm consistent on is that it's to do with wealth and class. The rich get richer and the poor get screwed over. What is striking now is the extent to which this distinction is now inter-generational. I saw some stats recently showing that in the last 10 years the wealth of those aged under 35 has dropped dramatically, while that of those aged 55 plus has increased equally dramatically. On aggregate, because individual cases aren't terribly helpful, the issues are inter-generational, and they arise from people aged 50+ who expect to get richer and richer from unearned compounded gains on financial and physical assets. And my God, they spit out their dummies when you suggest that we need to cut pensions for those who have already retired. But there in today's "Observer" is Ruth Sunderland pointing out that the pension promises made to those who have retired, or will retire soon, are utterly unsustainable. Yet the expectation remains that their kids will pay and pay and pay again.

Here's two shockers from the same paper:

The Pensions Regulator wants EMI to stump up £250m to top up its pension fund. (Remember EMI was bought by Guy Hands/Terra Firma for £3.2Bn of leveraged/debt money three years ago.) EMI's pension scheme has 22,000 members, of whom 500 are working for the scheme and paying contributions. 21,500 claimants for 500 employees; how's that supposed to work? Clue - not by getting the 500 employees to cough £500,000 each.

M&S and Sainsburys also have pension shortfalls. Proposed solution? Give the pensions funds a chunk of the company's property portfolio. Apparently PriceWaterhouseCoopers is advising "33 'major UK employers' on using more than £5bn of non-cash funding in this way". So that's the kitchen sink getting thrown in to keep paying out the pensions; and what will they do next time? Give them the keys to the executive loo?

Whatever people might or might not think of boomers, etc etc, the fact is that previous generations have made themselves promises that can't be paid. At bottom, high house prices are a blank cheque drawn on the next generation. The reason this country is in such a mess is because of people who want to live off the backs of other peoples' work by "investing" in, principally, property, as well as pensions. They are demanding an unwarranted and unsustainable return. The sense of entitlement is palpable but try suggesting a reset in pension and property/financial asset prices and see where that gets you.

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Very little (only from parents) split six ways between four siblings and two nephews (£10,000 at the most). What I do have I've got mainly through my own efforts, and I consider myself very lucky to live in a lovely area and have just a tiny mortgage left to pay.

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Apologies: it CAN bring out the worst in people.

Kudos to those on here that want their parents to spend their money on themselves.

All well and good in normal circumstances. In normal circumstances a person should be able to fend for themselves, work hard at getting qualified, get a job based on those qualifications, work hard at their job, move up, settle down, purchase a house, get married, have a family, have some pride in their accomplishments, and not mooch of their parents.

These are not normal circumstances. If you missed the boat and didn't happen to buy property at least 10 years ago you're doomed to a life of renting, constantly moving, having the threat of eviction over your head at all times, putting off marriage, putting off a family until you are settled enough for schooling of your kids etc, and spending money on rent instead of paying off a house.

In this case your parents are much better off than you despite not actually having worked as hard as you do in as demanding a profession. What do they want to do? Swan around the world clinking champagne glasses on cruise ships spunking the lot and trying not to think of the offspring? Most aren't happy doing that. Most know that life isn't fair, they have plenty, their kids have nothing through no fault of their own.

If they've any conscience this housing bubble has ruined their retirement, what caring parent would stand by with plenty watching their kids suffering?

Those that can and that care will help their kids out. It makes their kids feel bad to take it but if they've any sense all appreciate that life is not fair, their parents didn't in all likelyhood deserve such wealth and their kids didn't deserve such poverty.

In these times spreading the wealth between the generations via inheritance or early gifts is not shameful as it may have once been. Boomer kids who didn't buy in time are not wrong to accept or even ask for this charity, without it the boomers wouldn't enjoy their retirement knowing that their kids were suffering anyway.

Old rules of right and wrong here no longer apply.

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BUT, working on the assumption that your parents live to over 100 (which is highly unlikely) You then will be retired and could look after them yourself ... couldn't you?

What is it with people on here that seems to want them stuffed in care homes!!!!!

Are you trying to say that I will definitely inherit a huge sum so I should do nothing with my life and sit on my **** until they die? 20-30 years, possibly more? Why don't I just move back in with them and be a layabout. I could even claim a few benefits whilst I'm at it.

I said nothing about stuffing my parents in a care home. However if they are of the state where they require 24 hour nursing care, at no point in my life, working or retired will I be able to provide that personally at home. I will either pay for a nurse at home, or put them in a nursing home. And there will go the inheritance.

Edit to add: I just reread that and it looks like I'm bitter about paying for nursing care. I'm not, indeed I fully expect it, hence my self-made mini-fortune. I also have nothing against parents who want to help out their children, my only problem is that there is a lot of MEW-ing of homes in order to buy overpriced starter properties, that is dangerous.

Edited by Cash with Nowhere to Go

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Well for starters, to get that security at any age - to know it's coming - is a great ease, but what I've also noticed is that people aren't (as in Mark's post) just inheriting from parents.

No one knows it's coming, unless there is so much wealth in the family that the elderly can be cared for should they need to be.

This is why universal benefits for care would be a good thing. Also why removal of inheritance tax is a threat to the majority if they only knew it.

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The fact is that anyone who wants to make money out of property becomes a parasite, on this measure.

Here's what makes somebody a rentier parasite:

1. When property is cheap and interest rates are low (e.g. the mid-late 90s), put a 10% deposit on an average house.

2. Rent it out for more than the mortgage. This is only possible in a sustained low interest rate environment like the one the BoE imposed on us for the last 13 years. This keeps the cost of the mortgage low while simultaneously inflating house prices so that renters turning up too late have no option to leave the rental market by buying.

3. After 25 years, expect to own an average house outright.

So BTL landlords playing this game expect to own an average house outright after putting down 1/10th of the cost of a house as deposit 25 years previously. On capital gains alone that represents a gross return of 9.6% when measured in "average house cost". So what heroic feat did they perform to entitle them to these fantastic gains? Put down £6k (a 10% deposit) on an average house in the mid-90s? Assume virtually no risk? Free up almost no resources for society?

The cost of the government trying to ensure these returns for BTL parasites who paid almost nothing in when they joined the game is what's killing our economy.

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my mother is dead, so my dad had the house and land.

Then 4 years ago he had a bit of a heart scare, so the doctor said to take things easy, put the feet up after a hard life of toil and graft.

So my dad sat in the house and watched a bit of daytime tv as the retired do, and while watching it became quite intrested in the channel 4 daily horse racing. Being in an area where the nearest bookies is 60 miles away in inverness ( the religious in the north and islands keep the bookies out, i think it would be easier to open a lap dance bar up here), he thus did what many a bored soul do up here and got himself a ladbrokes telephone betting card and one from william hills to, just incase the offered a better price on the day.

So he started off betting £10 here and there as a few of his pals did ( £10 is min accepted bet for phone betting)

He put the house up for sale and sold it, then the land and got himself a nice old folks council house.

then he got realy bored and started betting heavy, first he would bet £10 on every race, then same on every race on every meeting of a day, with practically the phone glued to his ear.

after 2 years he had spunked all the money and £70k on his credit cards which he is now paying off on a iva at £5 week.

hes fitter than he has been in years on the warfin.

it was his money so ive no complaints, but i thought i would type this as a warning to others not to be so smug, maybe your father will head off to bangkok and marry a go go dancer and blow the lot, or give it to some nice nigerian banker.

dont count your chickens.

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I know most of there parents, and i would expect 20+ years, god willing.

Cheers

ril

Edited by ril

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I know most of there parents, and i would expect 20+ years, god willing.

Cheers

ril

Will their early pension entitlement be tax free and provide an income for life? ;)

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From a straw poll of my friends, (30 Somethings) - 85% of them will be getting 200K +

Cheers

RIL

I wonder how many of that generation (and not your friends specifically) are happy to take on more interest only debt than is prudent under their present circumstances because they expect to use the inheritance pot of gold at the end of the rainbow to repay the principal.

I have seen IANs (Inheritance Anticipation Notes) and BANs (Bonus Anticpation Notes) cause people a lot of pain when reality and their expectations diverge.

IANs and BANs don't actually exist, they are just names that I made up that are reflective of the mindset of people who are willing to borrow to spend to-day against money that they are "sure" that they will get in the future.

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My family and my wifes family have all decided to leave all the wealth to the grandchildren..we have enough for ourselves so do not need to inherit and the money will give the grandchildren a leg up,,,,,

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  • 315 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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