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?

I agree with those who say this money was never intended for you. If the person who left it to the children, wanted it to help buy you a house, they would have left it to you. As it stands, your children have been left money. I think this money should be ring fenced for them. It doesn’t matter how much more you think you could make them or how little that money will seem in x years time. It’s their bequest. It belongs to them. It isn’t yours to spend.

Lampshine - we live in a small 2 bed terrace. No parking. No separate place for dining.

5 people, in a small 2 bed terrace with no separate space for dining?! That's fucking insane! And you want to use your kids money to sort this mess out? 🤦‍♀️

@SkintAsASkintThing 10K could be life changing. They could use it to set up a small business, or travel abroad to get memories for the rest of their lives. But I agree in theory.

If you're on fairly low incomes and can't afford to live where you are now you need to get new jobs and move somewhere cheaper. Not take money from your children's inheritance.

There is a reason the deceased asked that it skip a generation!

I'm afraid i'm another one who doesn't get why you would keep having children if you can't afford to house them comfortably, presuming all 3 are not contraceptive fails....

They are bloody stealing it! How can you borrow something from people who are too young to know what they are lending? How can posters be so stupid to think this is anything other than theft? The idea that it might make financial sense is irrelevant, totally. I would also suggest the track record of the OP hardly offers hope that this money will be paid back. More likely, her and husband will end up eating into any money saved to go on holidays, buy better cars etc.

This will not end well, that I would guarantee.

" What's the point of the money just sitting there for the next 14 years?"

Becuase

1. it's not their money
2. The money ould acruue tax-free interest
3. When would the children "see" this money that was left to them? Unless OP sells up and returns the % to the kids upon the sale of the house?

The ops not gong to save money for the kids, those savings would be fair game just like their inheritance, the pair of them would be spending it and justifying why they should. And they aren't going to want to sell the house either before it suits them.

What they are simply doing is stealing their own children's inheritance to fund their lifestyles. The children will only get what their parents were supposed to safe guard for them on their parents death and that's assuming there is anything left at that stage. A big if.

The pair of them are just taking it. That's it in a nutshell. They will follow the legalities as far as they have to, will make an effort to save, before they dive in and spend that too.

Yes I would OP. It will benefit you all as a family, and you can save up to repay the money.

It's not yours to spend it is your children's and should be in trust for them until they 'come of age'. Now you might legally be able to invest the money in a property as the trust with a charge on the property for each of the children for their share, but you'd need to be prepared to sell or remortgage to release their funds if they wanted it.

I can't believe you're considering just spending the money. That's unconscionable.

How are you coping living in 3 bed with 5 people? That's a nightmare situation! Is this a joke @lampshine, for the first 10 years of my life we were 7 people in a small 3 bedroomed house. It's wasn't a nightmare it was family.

It's not your money, you did not earn it and you did not inherit it. Invest it for them for the future. Sort your own housing situation out, you are adults who decided to have these children now start adulting.

Use your £45k to get on the property ladder (where do you live is this is not enough?!)

To buy a three bed house?! Most places, depending on your earnings.

If you could save £300 a month, you could put £2.5k a year into savings and have it back in 10 years, before they turn 18. Or extend your mortgage later. But if your financial situation changes you wouldn’t be able to do that.

@Disfordarkchocolate that was meant to say 2 bed.

Personally, I think 3 kids in one room is a nightmare and if I lived in a 2 bed I wouldn't have had 3 kids.

@croprotationinthe13thcentury because not one of us (not you, nor me, nor anyone else on this thread) actually has a scooby what the will says. Which is of course the most important thing when determining legality. We have no idea who the executors are, what form the inheritance takes etc etc etc. So saying it's outright illegal may be incorrect (I make no comment on the morals of the situation).

Which is why the OP needs to ignore everything on this thread and carry on speaking to their solicitor.

You’re making a lot of assumptions @BarbaraofSevillle

The only way to guarantee that the dc will get the money they’ve been left is to leave it for them. That’s it.

Everything else is risking it. And it’s simply not OP’s to risk.

you need to look at the will, who are the trustees,

Whoever the trustee is they have a duty to care for the money for the child and invest is wisely, some wills will specify that the money can be used for the child's benefit before they are 18 usually education, health travel sometimes
ie you might be able to use £650 of it to fund school ski trip when 15 as otherwise they couldn't go, or maybe a kayaking course it just depends on the will on the other hand the whole sum may be required to be kept intact until age 18 normally invested in bonds or unit trusts etc
The property is fraught with dangers as when eldest is 18 they could effectively force a sale rendering not only you potentially homeless but also younger siblings

as someone said you might be able to save 25k in 7-10 years but what is one of you becomes ill, disabled and this can't happen
even if there is a legal way I think it is too problematic long term
Though I feel sorry you are in a rent trap

I would do it as it will bring benefits to the children. More space, stability, means they will potentially inherit more down the line. I see it as your investing it but with a view to repay. Yes technically it's not your money but I would do anything to help my family so I don't see it that way.

See a solicitor and have a solid plan to save that £300 a month to the point it's repaid with the interest over the period.

It’s not yours and since they are minors, the executors will be obliged to put in trust until they are at least 18. That’s the law.

Divgirl. The op has stated numerous times they plan to repay the original money.

It's a win/ win situation.

Personally I think it's ridiculous that people who reliably pay rent even need to find a deposit, it traps so many people into renting as they can't save AND pay rent at the same time.

How would you work out how much interest the 25k would have made when the children turn 18?
What happens if you divorce?

Personally I think it's a terrible idea. It's not your children's responsibility to house you and your dh.

I would also do it, but only if you're serious and committed to repaying it, plus interest, by the time they come of age. Only you know if you are.

Our first house had 2 sets of bunk beds, we managed. Having said that I wouldn't have had 3 children if I had a 2 bedroom house either @lampshine, sometimes these things just happen though

What happens if they do it and he loses his job? And neither of them find work for years, or at least not enough work to fund repayments?

What if they’re irresponsible with money and they haven’t saved enough by the time one of the dc needs it?

What if dc has sudden medical expenses that the money could have paid for?

What if one dc gets a wonderful opportunity to advance his/her career or study abroad but they can’t afford it?

What if something happens to devalue the property?

What if OP and DH split and they need to sell?