PowerSwitch

Sorry, maybe I should find a non-PO forum for random rants at the world but I nearly spat my coffee out again!

http://news.bbc.co.uk/1/hi/business/5277838.stm

Now you can get an "Inter-generational mortgage" where you live in your house and then pass on the debt to your kids when you kick it! But, the best bit is that you're doing it to help them have less inheritance tax to pay...how nice!

So, while you use up all their gas / oil / air / food / soil etc, you can chill out safe in the knowledge your kids will be enslaved to the bank forever more while you rest in peace!

I want three of these.......what a great idea..........




Alternatively, I could try shackling my three kids and sending them immediately to Siberian Salt Mine, or Peruian Gold Mine etc etc saving a lifetime of my own agony in anticipation.

Unbelievable. They will try anything to ensnare people in their debt webs. This is outrage.

john.rico wrote:Unbelievable. They will try anything to ensnare people in their debt webs. This is outrage.

I presume that it's up to the children whether they take the mortgage on or not? Normally, you can't inherit debts.

Also, normally, you take out a life assurance policy with the mortgage so that if you die, the mortgage is payed off.


I can't quite see what this "product" is offering,


Peter.

Hasn't Japan had this type of mortgage for donkeys years ?

Anyhow, we'll have financial meltdown before then!

On the face of it, it seems like a good thing if it reduces inheritance tax liability.

I don't quite understand the finer points of how exactly this is done though, I thought it was mandatory to settle debts against assets at the time of death.

Maybe it just means you won't be forced to sell a house if it is still heavily mortgaged upon death. Which wouldn't really be reducing inheritance tax liability.

I would have thought that, if you wanted to keep the house, you continue to pay the 'mortgage' once the folks have kicked it. If you decide you don't want it, put the house on the market instead.

This type of product was apparently all the rage in Japan right before their bubble burst in the late 1980's. Talk about not learning from the mistakes of others...

SarahSimcock wrote:This type of product was apparently all the rage in Japan right before their bubble burst in the late 1980's. Talk about not learning from the mistakes of others...

Yes, just keep piling on those debts even if you can never pay them back! Someone else can worry about it later...a sound financial plan I'm sure

Wonder what happens if you can't (or don't want to) service the inherited debt, and the house is worth a fraction of the value of what remains on the mortgage? Could you still say, "No thanks." or would you be lumbered with it?

grinu wrote:Wonder what happens if you can't (or don't want to) service the inherited debt, and the house is worth a fraction of the value of what remains on the mortgage? Could you still say, "No thanks." or would you be lumbered with it?

Obviously it wouldn't be compulsory.

Otherwise what's to stop people from leaving all their
debts to their worst enemies, for a laugh (posthumously).

Could be fun if the parents and children fell out...'Ooh, think I'll remortgage again - need a nice holiday'