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?

Stealing and theft have to have an element of depriving them permantly of their bunce!

The OP cant geuarentee they will get it back. At any point.

So yes, there is an element of permanently depriving them.

Use it to buy a house, its security for the kids also the kids get it after you die as you can leave it in their names.

Use it to buy a house, its security for the kids also the kids get it after you die as you can leave it in their names.

What the actual fuck?

It is already the kids money. Did you miss that?

Scorpvenus1 totally missing the fact that its the kids money and that they are entilitled to it rather than woating until their parents die.

What if there is no house.

What if it goes in care fees
Or the pp and dh divorce
Or he ends up out of work and they cant pay for the house

It's not the op money to take the risk with.

Is it legal to do? I thought I saw a son bringing his mother to court for that.

I wouldnt think it would save you money as the rent is still due, to them, on their investment. At least in part.

Whoever is their trustees will have to do the best in terms of safe investment.

Thats the other issue with property. What if the price were to fall?

A new mn low

You can't do this, life gets in the way perhaps and then you will not be able to pay back, what was originally not yours.

If you do it legally, and in such a way as to ensure your kids have access to the money at the age of 18, then YANBU. They will benefit in the meantime. Why not save the 300 you'll be saving in rent towards a fund for them?

If you plan to just buy a house using it, then YABU. Leaving it them after you die is not acceptable imho.

I really doubt this would be allowed.

There are extra costs associated with owning Vs renting - that £300 per month will quickly get eaten into if you need to replace any carpets, fix the boiler or heating, let alone decorating or fitting new kitchens or bathrooms. It is ever so easy to keep finding excuses not to save that money back for them. The risk on that should categorically not be borne by your children.

I think you need to bear the risk yourselves. Maybe move to a flat to get more floor area for your rent money, and save like crazy. Maybe look at evening and weekend work - loads of people can't afford to have a SAHP. Give yourselves 5 years to get on the housing ladder, moving areas if you have to.

Is the OP 'stealing' it or 'investing' it? Many people invest in property instead of pension.

You might have a point if the kids go on the deed to the house. If they have no ownership rights to the house that would clearly be stealing.

This is shocking.

I don't think you will be able to. Having recently bought our durst home we had to provide proof of where the money came from (it was an advance on inheritance) and we then had to provide a signed letter from the people advancing us to say that they waived all interests in the property.

In your case you don't have any proof that the money is yours to use and even if the mortgage company and solicitor accepted that you are "borrowing" your children's money then your children would have to sign to say they understand that and waive all rights to the property.

Given that people under 18 (I think, I am happy to be corrected) legally cannot be held accountable for any contracts they have signed, then no, I don't think any solicitor or mortgage company would entertain the idea.

Disclaimer - not a solicitor or financial expert. Simply going on my own experience and understanding. Seek advice.

Why has no-one mentioned the person who died's wishes? They clearly didn't want you to have the money? It was left to the children because that was their wishes.

If they thought you needed it, they would have left it to you?

I really hope the person I know who is planning on doing similar reads this thread and changes their mind

Why has no-one mentioned the person who died's wishes?

I did, just up thread and others have as well.

It would really be a poor thing to do to your children and a breach of trust with the person who left them the money.

Firsttime- exactly - makes a mockery of having a will if someone else can spend it like this

normally a trust for a child ends when they are 18 unless a later age is specified ( 25 being the oldest) mostly the inheritor is entitled to the interest/income from the investments once 18 but not the capital,
once over 18 they can apply for the capital
trustees have to take reasonable care with the investments but they would not be responsible for a stock market crash but they would for lending it to Nigerian Prince with promise of 10 grand a year interest or keeping it in a box under the bed

Limp lettuce has been in this situation and she said it benefited her. .. I don't know why op is getting such a kicking for simply asking for ( kindly put) views on this predicament. .. it would be more bereft of her If she did stick it into savings account and let it value whittle away whilst they struggle in small cramped rented house.

I think trying to get better house, life and precious childhood is a great idea.

If op can pay money into perhaps stocks and shares junior ISAs for her children in lieu of this money. She will give them their portion of savings + back. And hopefully an asset the whole family will benefit from year's down the line.

The floor in plan is, children get More expensive.
What are jobs like etc and as children grow could 300 saved in rent still Go into accounts

@Wanttobeontheladder

Do it! I would. Providing a secure home for your DC's childhood is worth more than the £8000 (plus interest) they'd get at some point.

Honestly, the frothers on here are being ridiculous. By the time your DC are adults you'll be working and could remortgate to release their "inheritance".

You can buy the house but the property has to be entirely in the children’s names.

and how exactly will they be paying the mortgage?

OP it's fine, kids need space and I'm sure will appreciate having bedrooms and privacy once the teenage years hit. You can put a charge on the house (use a solicitor) that ring fences the percentage your DC own so you can at some point remortgage and give them their share when they're grown up and need it.

Stealing your dc's money and then lying to them isn't the best look.
It may be possible to do this legally but you would need to factor in the legal costs of setting up a trust.
This isn't your money if GP's had wanted you to have it for a house deposit they would have given it to you, you must know this?

Providing a secure home for your DC's childhood is worth more than the £8000 (plus interest) they'd get at some point.

I'm interested to find a poster who can explain how living in a mortgaged house is vital to the future of these children.

I'm also interested to hear from posters who think the children's childhood will be worth more if the parents lay down an extra £25k deposit.

The truth is these things don't matter. What matters is not being a cunt.

Oh, and property is a much better investment than an ISA - the UK's population is increasing much faster than housing is being built so, as demand will consistently outstrip supply for the foreseeable it's a good investment.

Absolutely not! As much as i can understand why, the money is your Children's. I just could not even begin contemplating doing this to my DC

And aargh, stop accusing OP of stealing!! The money will be exchanged for part ownership of a house, not pissed up the wall of the local pub!