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?

Tenessee in the OP’s earlier post she talks about setting it up with a solicitor. The solicitor should advise about how to do this in a transparent way.

If the OP is the trustee and indeed intending to use the money improperly, much better that she uses it to put a permanent roof over her kids heads!

I can’t see where she’s saying she wouldn’t ensure they got it back?

You can't do this to your poor kids it's theft . Get a job and use your own money.

I'm sure their must be a way to do it legally and above board.

For those going on about it being the kids money how do we know they will use it wisely and not go out at the age of 16 and blow it on a holiday, a bundle of concert tickets and a a few video games.

It beats all logic why the GPs decided to skip the generation who'd make best use of the cash.

I'm inclined to agree with @user1474894224

Assuming it is legally possible, I'd certainly consider it. Was the solicitor whom you consulted talking about a Declaration of Trust, or some such? (i.e. your and your DH's names are on the deeds, but neither of you has any beneficial interest in the property)?

If that's the case, you would of course run the risk of having to sell the house once your DC are of an age where they can decide what to do with it - which would leave you back at Square One. However, it might still be worth it, to give them a better standard of living and more space now.

It would have to be absolutely watertight legally, though, and I don't know enough about it to know if it would be.

I did use my DC's inheritance to put towards a BTL purchase when they were little. However, it only totalled £4K, which I paid back to their savings accounts over the course of 15 years. If it had been a larger amount, I might still have considered it - but only subject to everything I said earlier in the post. The house would essentially be theirs - and that in itself stores up problems once they are older and might not agree on what to do with an asset they never consented to buy...

You may keep suggesting that it would benefit the children.

But it is their money. It is not up to children to fund their own upbringing. It is up to their parents to fund their upbringing.

shequakes you are missing the point that it is also very much for the benefit of the children’s standard of living and potential long term security.

You would be in a better position to buy if you got a job. The days when one salary was enough are long gone.

We don't of course know how much money is involved, or the terms of the inheritance. If it's left in trust till the children are adults the parents may well have the power to use the money for the children's benefit in the meantime. They should be able to clear this up with legal advice.

BazaarMum the OP clearly posted that the kids will never know. Unless she chooses to tell them.

So clearly not planning in doing it above board.

Are you actually saying that if OP is intending to steal the money, at least it's good that its stolen to pay for a house?

As though that makes it ok. At least it's been stolen for a house? What the actual fuck?

Why are so many people trying to justify this?

For those going on about it being the kids money how do we know they will use it wisely and not go out at the age of 16 and blow it on a holiday, a bundle of concert tickets and a a few video games.

We don't. That doesn't make it any less their money.

@EdtheBear they can spend it on whatever they want if there are no conditions in the will. Maybe they skipped a generation because they didn't want it all to be spent on a house or didn't trust the parents to help the grandchildren out if needed din future.

What if they want it back age 18 to go to uni? But you've spent it?

BazaarMum are you actually saying "well if the mum is stealing it, she is stealing for the house so that's ok'.

It's ok for a trustee to misuse funds? Depending on the reason?

The op clearly stated the kids won't know unless she chooses to tell them. That sound above board?

It may benefit the children to have a permanent home. But risking their money to do it, isnt right. As many have said, there are loads of reasons these children may never see the money.

Tenessee I would never condone she ‘takes’ it for anything. I was saying it’s reasonable she invests it and ensures the children benefit from more than they would have done otherwise.

However, if she’s hell bent on using it and not telling the kids (not justifiable in any circumstances) at least she’s using it to house her kids not pissing it up the wall. I’ve known cases where people have taken an inheritance and spent it on a fancy carpet. No lie.

Sorry basically posted the same thing twice thought the first one had not posted and wrote it again.

If you can do it legally and in a way which releases the inheritance (plus the interest it could have earned) as each child hits 18 then I think you should go for it.

£150 a month for 14 years would repay the initial sum. If you save the £300 a month you are thinking £150 to them and £150 to another savings account you will soon build up a second sum in case of redundancy, to reduce the mortgage or to pay back the inheritance early.

Ha ha tennessee I just thought you were really annoyed 😄

It’s out and out theft, no matter what the money is used for.

However, if she’s hell bent on using it and not telling the kids (not justifiable in any circumstances) at least she’s using it to house her kids not pissing it up the wall. I’ve known cases where people have taken an inheritance and spent it on a fancy carpet. No lie.

That makes no sense. Just because someone else has stolen money and wasted it, doesnt mean this is ok to steal it and spend on something better.

The trustees can not take the money and invest it in their own name. That's illegal.

The fact that some other people have done worse, means nothing at all.

Ha hatennesseeI just thought you were really annoyed

Hahhaha no, just a rubbish phone. Lol

I can't believe the pearl clutching about theft, and the kids owning the OP's home.
She never said anything about having kids own her home.
Where is the problem if the money is put back with a little interest. Banks aren't paying any interest atm, by the time the kids are old enough house prices will have increased and be far better return on investment than a bank.

tennesee I said very clearly it isn’t ok, if that’s what they are planning. I was simply musing.

But done properly and transparently by responsible trustees- it’s a justifiable plan.

How old are your children? If they are very small and won't need it for a good few years yet you could potentially use it for a deposit so long as you saved it back up again before they were 16. Presumably a mortgage might be less than rent so you could commit to putting enough away per month to guarantee the sum is made up by the 16th Birthday.

The money belongs to your children and they deserve the £25k invested for their future. In 14 years that £25k could be £30-£40k or more.

If you choose, and the mortgage company allows you too, invest it as a 12.5% share (legally written in trust) of a £200 house and pay/save for them 12.5% market rent, I think that is fair, but it must be done legally so the children keep their inheritance regardless of future circumstances. You must also be prepared to buy out each child as they reach 18.

magoria where does the money for the house up keep come from?

RomanyQueen the kids should own part of the home. As it's their money.

Again, another poster forgetting that there no guarantee they can pay it back. And its not her money to choose to risk.