Using child’s inheritance to get on property ladder

[Wanttobeontheladder]

We are in our late 30’s with 3 children and have been renting all our adult lives

We are desperate to get on the property ladder but I am SAHP and DH is sole earner.

After the loss of a parent recently there is a considerable inheritance that was left directly between our children rather than coming to us.

Using this money would mean we could finally get on the property ladder (just)

Seeing as the children benefit too we feel that we should use it.

Would we be unreasonable to consider this?

Yes it's not your money. It's the kids. If the person had wanted you to have it they'd have left it to you.

Put it in a high interest account and forget it.

I thought there were laws against this shit.

Not necessarily unreasonable, but they would own part of the property. So what would you do when they get older? It is their money not yours.

I do however wish people wouldn't skip generations with inheritance, it seems so pointless.

If my parents did this to me I'd never speak to them again. That money could help your children get on the property ladder, or do something they'd never have the chance to otherwise. Also not sure if you can even legally spend the money if it's specifically left to the children?

Totally

You can’t as it’s not your money...unless there is a way around it by putting the property in their names, possibly in trust etc I’m not an expert at all though so I don’t know if that’s possible

Would you even legally be able to this?

I do however wish people wouldn't skip generations with inheritance, it seems so pointless

There are plenty of reasons someone may chose to leave to the grandkids and not their kids, and that's not pointless at all.

It is if thr parents then steal it.

of course YABU its not your money!

YABVU. That's theft. It isn't your money.

How old are your children? If they're late teens/young adults and you can discuss this with them as a way of getting THEM on the property ladder, and make the appropriate part of the property in their name then you could consider it, and take legal advice on it.

If they're young, or you weren't planning on naming them as part owners, then it's both illegal and immoral surely?

How was the money left to your DC? I presume in some form of a trust fund till a given age?
How would you be able to fulfill the requirements of the will and return the funds with interest to each child the correct age? There will be conditions attached to the trust as well I presume?

See a solicitor or a financial advisor and check out the legal ramifications of a) using their money like this and b) sharing ownership in this way. What you can't do is buy a house with that money and then sit on it once they've left home.

Say the money is there for them at 18, Are you going to sell your house as soon as the eldest is 18 so they can have their money back!?

I’d never consider it. If the money isn’t in a trust, I would put in a trust and forget about it until they can access it.

Seriously ? You need to ask if it’s ok to buy a house, using money that belongs to your children? No it’s not ok. How would you pay them that money back?

I’d do it, assuming it’s legal. Then you can carry on saving to either pay them back or buy a place of your own and sell that one. Get legal advice though.

Scummy behaviour, don’t steal from your children. Ffs.

Is the plan for the inheritance to be the deposit and you to pay the mortgage?

If so your children should own the percentage of the property that the deposit is and as soon as they come of age and decide they would like to sell you should be prepared to do that and reimburse them their full share with any equivalent growth in value and no guilting them in
‘Making’ you sell. I would also say that if you are saving money by paying mortgage rather than rent you should put some of that money aside for your children as they could potentially be making more money off this money in other investments.

If you can stick to all of the above then maybe you can consider it.

I think this would have far reaching implications. Like stamp duty on their real first home; which would be their second home legally, and potentially not qualifying for any first buyer schemes.

You'd also have the legal hassle of what happens when they are 18, what happens when they want to move out, what happens if they want you to move out...

And it was left for them, not you. I'd leave it alone.

If the money has been left to your children then they need to benefit directly from it.

Therefore, even if you CAN use it to buy a property (and you'll need to find out about legalities etc) then you need to show that your DC own the proportion of the property in their own names (held in trust for them) that their deposit gives them.

It's a bit of a can of worms and you need to proceed carefully and get lots of advice.

You can't just spend their money on a house that you will then own.

It's not your money. That's theft. Do the right think and stick it in trust for them to access at 18/21 if it's not already.

Don't do it totally unfair on your children it's there money not yours

If you can do it legally then actually I'm going to say yes consider it. Would the mortgage be smaller than rent? Would you be able to make monthly repayments with the difference? Would it be repaid before they will need it? I think a secure roof over their head while they grow up is a good thing. I can see from other people's views I'm in a minority though.

Why didn't they leave the money directly to you? Unless you can sell the house when they are eighteen and give them their money back, then you're in the wrong.

I assume they are really quite young if you are SAHP? I'm not sure either you or your DH have thought this through properly.