Father in Law Reckless with Money

[concerned]

So the father in law was never able to save anything, at age 75 now he lives alone in government supported housing.
He tried to start up a business when he was younger which did not work out.. At one stage he had ran up a debt of about 10M yen, declared bankruptcy... He also has some unsavory friends, and likes his pachinko which he has also spent money on... Well a few years back his wife (mother in law) passed away, left him with about 8M yen, which I thought was a substantial amount considering the conditions they lived in... Well according to my wife this money is now all gone, due to a combination of him loaning it to his friends and spending it on pachinko...

So he is now making ends meat, and my wife had previously suggested we allow him to live with us, which I previously agreed to, but I am now having second thoughts on this now... My biggest concern is that despite his age, due to the sort of people he hangs out with, he will start running up debts again which I will ultimately be in the hook for.. My understanding is that in Japan debts can be inherited... My wife says at his age he would not be able to borrow money, but I suspect money can always be borrowed from certain people...

Just wondering if any others having such an experience?

[Moneymatters]

. My understanding is that in Japan debts can be inherited... My wife says at his age he would not be able to borrow money, but I suspect money can always be borrowed from certain people...

Just wondering if any others having such an experience?

As I understand things. If there is debt as part of an inheritance you need to take it all or nothing. Therefore you can refuse the debt by completely refusing the inheritance.
That said. I would not want such a person to share my residential address for any length of time.

No personal experience but BIL's FIL moved in for a few years and it did NOT work out. Is your house is built for it?
I know my house isn't as it's hard enough hiding from the other occupants who kindly signal their presence by moving around like agitated cattle..
There is a societal expectation here that could have been instilled from early life so maybe a convo on your partner's motivation might help.
Hope you can find a solution that works for you.

[Deep Blue]

As I understand things. If there is debt as part of an inheritance you need to take it all or nothing. Therefore you can refuse the debt by completely refusing the inheritance.

Are you sure?

Full Acceptance (単純承認, Tan-jun Shounin): Heirs accept both the assets and liabilities (including debts) of the deceased. This means they will inherit the entire estate, including all debt, and are fully responsible for paying off the debt, even if it exceeds the assets.

Limited Acceptance (限定承認, Gen-tei Shounin): Heirs accept the inheritance but limit their liability for the deceased's debts. They only pay the debts using the assets from the inheritance. This means if the debts exceed the value of the inherited assets, the heirs are not personally liable beyond what they inherit. This must be done through a legal process, and all heirs must agree to this approach.

Renunciation (相続放棄, Souzoku Houki): Heirs can renounce the inheritance entirely. By doing so, they are not responsible for any of the deceased's assets or debts. This must be done within three months of becoming aware of the inheritance. After renouncing, the heirs will have no claim on the assets or responsibility for debts.

[Moneymatters]

As I understand things. If there is debt as part of an inheritance you need to take it all or nothing. Therefore you can refuse the debt by completely refusing the inheritance.

Are you sure?

Full Acceptance (単純承認, Tan-jun Shounin): Heirs accept both the assets and liabilities (including debts) of the deceased. This means they will inherit the entire estate, including all debt, and are fully responsible for paying off the debt, even if it exceeds the assets.

Limited Acceptance (限定承認, Gen-tei Shounin): Heirs accept the inheritance but limit their liability for the deceased's debts. They only pay the debts using the assets from the inheritance. This means if the debts exceed the value of the inherited assets, the heirs are not personally liable beyond what they inherit. This must be done through a legal process, and all heirs must agree to this approach.

Renunciation (相続放棄, Souzoku Houki): Heirs can renounce the inheritance entirely. By doing so, they are not responsible for any of the deceased's assets or debts. This must be done within three months of becoming aware of the inheritance. After renouncing, the heirs will have no claim on the assets or responsibility for debts.

Interesting. So an additional option with a fail safe.
I guess that limited acceptance allows the inheritance to be tied up even if the true value of the inherited estate isn't proven.
So, as an example, if that land/magic beans can't be sold for the value parties thought it might be their exposure is limited.

Useful info and thanks for sharing not that it will apply to me.
Not because the in-laws have nothing. Just that I'm convinced the MIL will outlive me..

[Nancy]

I don't know about inheritance, but just thinking that you might want to just give him a gift of 3 or 4 man each month, and let him continue to live in supplemented housing. This way the city considers him to be low income and would cover a lot of the nursing insurance payments etc. if needed.So the big question might be where he would be happiest.

[Tsumitate Wrestler]

I don't know about inheritance, but just thinking that you might want to just give him a gift of 3 or 4 man each month, and let him continue to live in supplemented housing. This way the city considers him to be low income and would cover a lot of the nursing insurance payments etc. if needed.So the big question might be where he would be happiest.

This is the best plan. Grocery store gift card instead of cash, and setting up autopay for his utilities.

Do not give a gambler cash.

[hana]

Sorry to hear that. It’s an unpleasant situation. I would not allow the FIL to live with you -- a risk to your own money and possibly marriage.

If you donate money to a parent without significant savings, I think it’s tax deductible up to about a million yen a year. (Someone here probably knows the exact details.) I used to claim that deduction on my tax returns while my surviving parent was alive.

[Swimmer]

I don't know about inheritance, but just thinking that you might want to just give him a gift of 3 or 4 man each month, and let him continue to live in supplemented housing. This way the city considers him to be low income and would cover a lot of the nursing insurance payments etc. if needed.So the big question might be where he would be happiest.

Why give money to someone of his ilk? He will just expect more.

[captainspoke]

Just our personal case. Pretty long ago my wife expressed that her mother should live with us, or that we should move such that that would be possible. Some years later my wife had changed her mind, and was rather relieved that that had not come to pass (recognized the difficulty of that). I did make my preferences known, but not very strongly.

OP's case, with the FiL being reckless with money, was not a factor in our case. This could be an added stressor.

[concerned]

Thanks! everyone for the replies here