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?

BazaarMum I get what you are saying.

The problem is theres no way to guarantee the kids actually get their money.

Lots of things could go wrong that mean they cant pay them back.

And then what if they cant remortgage when the eldest gets to 18?

Do the kids eventually force the sale and make their kids homeless?

If someone could come up with a way that its guaranteed the kids would get it back. I would agree but there isnt.

Look how many families end up in the shit because the wage earner cant work anymore? Or company makes them redundant?

I'm surprised at the horror.

If it can be arranged via a solicitor who ensures the children's interest is properly protected, it is fine and sensible.

If it can be arranged via a solicitor who ensures the children's interest is properly protected, it is fine and sensible.

And that's the issue. Anyway could cause problems and leave the kids without their money.

Then theres the ops comment that the kids wont know unless she chooses to tell them.

Not really above board

Whoops, apparently we do know how much the inheritance is .

If the OP has already asked the solicitor and told it would be ok with a trust, which I and several other posters have suggested, I don't see the issue. The trust will stipulate that the money belongs to the children. Anything the parents do with that money AS TRUSTEES must be in the children's best interests.

To my mind, the right thing to do would be to pay it back by the time the children come of age. £25k is not a fortune. They have time to do that. In the meantime the children will benefit from better living conditions.

25£ isn't a huge amount, perhaps you could borrow it with interest

I think it would be unreasonable. Using birthday money when they're little towards fun kid activities, e.g. swimming lessons or playschemes in summer is just about ok in my book, but this is a real nest egg for them. Using thousands for something adult isn't right. Leave it alone.

I personally would hope my mum would have done this if I had of inherited at such a young age, it benefits us all. My exdp inherited a sum of money from his dgp when he was 18 to put towards a deposit for a home - he blew it all in a year on drugs, so maybe that's why I think like this.

OP who are the Trustees for the children? Were the Trustees appointed by the Legatee (GP) in the will?

I don't have children myself (or any chance of an inheritance) so I don't have a horse in this race.

Using birthday money when they're little towards fun kid activities, e.g. swimming lessons or playschemes in summer is just about ok in my book.

I’m not too sure I could agree.
Those are gifts from family and friends that are aimed at either building a savings pot for child or to be spent on something chosen by child.

Swimming lessons and play schemes would never be something a child should be footing the bill for

I feel bad for the OP. I completely understand why you'd consider it. Could you then repay your children when you sell it and downsize after they've moved out? Then it's win win

After they’ve moved out?

So rather than getting their inheritance at 18 it’s as soon as they can leave the family home in total?!

Sleepyquest what happens if they cant?

Lots if posters are asking the question. But no one really answering.

What if the parents cant downsize due to poor finances when they are older.

Should the kids force the sale anyway? Or just suck it up.

What if there isnt an equity? The ops husband seems he feels hevis entitled to this money. What if he gets a secured loans or remortgage?

Theres risk in it. And it's not their money to risk.

bebeboeuf I agree and what happens if one doesnt move out until they are 30?

All sorts could happen.

Where is the problem if the money is put back with a little interest.

What happens if they lose their jobs, default on the mortgage and the house is repossessed?
Don’t be so bloody naive.

What happens if they lose their jobs, default on the mortgage and the house is repossessed?

Or they find the £300 a month they are saving ends up being dipped into for repairs, upkeep, fixing appliances or the boiler.

Well you're obviously going to do it based on your attitude in your posts. But I think this is awful. Had it been left to you then, yes, you could do what you like, but it wasn't. Presumably the person who left the money had a reason for leaving it to your kids. To take it to use as a deposit is really not on in my book. Have some integrity!

I think if I had 1/3 of £25k as a child and my parents invested it in a property for us to live in the handed it over later by remortgaging or from their savings I’d be perfectly happy.
The alternatives are to lend it to a bank for 15 years in exchange for a pittance in interest or to invest it in stocks and shares in god knows what global companies doing whatever with it for a bit more return.

I think if I had 1/3 of £25k as a child and my parents invested it in a property for us to live in the handed it over later by remortgaging or from their savings I’d be perfectly happy.

And how would you be if they didn't save it up or get a remortgage?

Surely it isn't the kids money until they are 18.
How can OP ask them now when they are so little? Of course she couldn't tell them or ask now.
If OP uses money for a deposit and makes a regular savings plan surely 25k can be replaced. Even we could manage this with one very small income.

I think if I had 1/3 of £25k as a child and my parents invested it in a property for us to live in the handed it over later by remortgaging or from their savings I’d be perfectly happy.

How would you feel if you could have had £8k or so but your parents bought a house with your money then it was repossessed and you got fuck all?

You are only borrowing this money and they will benefit throughout their lives from the security of a three bed home and the extra money available each month. 25k is not a lot in the grand scheme of things and even with interest added is doable. If the amount was a lot more then I'd be a bit more reluctant to say go for it. As it stands it sounds worth while as long as its done in such a way that there is complete transparency for when the kids are adults and need to know what happened to their money.

your parents bought a house with your money then it was repossessed and you got fuck all?

If my family home was repossessed when I was a child I would have bigger worries than whether I was getting an inheritance at 18 or 21 or whatever. Childhood circumstances are formative.

Surely it isn't the kids money until they are 18.

Why do you think this?

This couple are in their late 30s. One is a low earner, the other parent doesn't work but when she did she was also a low earner. Since we have heard nothing about plans to change the earnings situation I doubt that they will be saving enough to pay the kids back at 18. Sad but true.