At what age would you tell your child they have an inheritance

[BokehBabe]

Said child currently in year 9.

Now?
After gcses?
After a levels?

18 depending on sum and circumstances. If I was poor and the sum would make a big material difference to child’s life, perhaps earlier.

How much? It depends on whether it could change the course of their life, when they have access to it, whether they will need skills to be able to manage it. I’d lean towards not keeping it a secret.

Thanks.
Currently it should mean she will have a great boost towards buying her first home - nothing massive but a good start.
Mainly I agree that 18 is a good point.

...but then I'm torn and ponder on letting her know sooner.

It depends, if she might use the money for a gap year or to study at university or something like that I would probably tell her in year 12 so she has time to make appropriate plans (if the money would change her post school options).

Otherwise at 18, being careful to mention that it is just enough for a house deposit.

@Awaywiththeclouds

At what age would you tell your child that you had breast cancer?

I've been in that position so I can speak with some experience. I initially didn't tell my DCs ( who were 16 and 19 at the time, 19 yr old just doing her Uni exams at the time). I waited until I'd had my first lot of treatments , ie biopsy etc. I told them I had to have some tests. Once I knew what I was dealing with, and that I'd need extensive surgery and chemo, I then told them but not in the most in-depth way. As time went on I told them what I knew, so it didn't all come as a huge shock.

@BokehBabe

Thanks. Currently it should mean she will have a great boost towards buying her first home - nothing massive but a good start. Mainly I agree that 18 is a good point.

Has she actually got the money available now ? Or is this something that will happen when someone dies , ie in the future ?

I'll be honest I think it depends on the child and whether it's readily available. I know my daughter would have just blown it on clothes and stuff at that age, yet my son was quite prudent.

I have thought this through a lot as mine inherited very young and we will use some of interest to enhance their lives as they grow up but not touch the capital. My little one is aware she she a bit of money from her relative but no concept of how much and I won’t tell her until she’s capable of understanding. I don’t know what age that would be though.

I think it’s much harder with a teenager as it has less time to grow until she can touch it. I’d want to start sowing seeds that the money was left for a house deposit and will need investing but when 18 can draw on any dividends/interest to supplement loans etc for university or whatever else she wants to do. I think you want to tell her not to tell her friends and start trying to educate her on managing money in general (eg how your household is run, how expensive things are etc). I think telling a child at 18 just as they get access would be a bad idea without some education about money in the years proceeding. I think the ideal is that they see the money as something they don’t touch.

I think it would depend on the teenager's personality.

Some for example might decide not to try as hard at school if they know they have some money behind them to get their first house etc.

They might not be as driven to find a good job - although they will definitely still need it - they won't quite understand the meaning of the amount of money they have. They may think they will be set for life with it.

But if the child is sensible and mature, and will listen to your advice, then yes I would probably tell them quite young.

Depends what age she'll get the money? Is it in trust till a certain age? I would want any inheritance to go to my kids when they are older, say 25. I probably wouldn't tell them either till a year or 2 before. Think my youngest might have a tendency to be a bit lazy unless driven by the need to make money!!!

It's a fine balance at the teenage point in life.

We've been saving for dd since she was born - child trust fund, family allowance and any money she was given for birthdays and Christmas while she was a baby or toddler.

It's built up to what seems a lot of money to us (probably wouldn't seem much to those mumsnetters who are on massive salaries).

Dd is 18 but terrible with money so we haven't told her yet. We're going to wait until she graduates. Hopefully, she'll use it for something sensible like putting it towards a deposit on a flat but there's no guarantee.

If she had come into an inheritance when she was younger, I'd have done the same thing with it.

I'd have already worked hard on money management and impulse control.

We’ve never kept it from our kids, the youngest is now 12 and they all know that they have an inheritance. Our oldest is almost 19 and although she has access to it now, she’s still saving it until she buys her own house.
I personally think if you wait until they are 18, it’s a surprise and they’re suddenly aware of all this money and I can imagine it’s quite exciting finding that out. We reckoned if we made it ‘normal’ from a young age and had a few discussions about what it can be used for and how to be sensible with it, then it was less tempting.

At what age will they receive the money?

As early as possible.

This will give you years to discuss it, what opportunities it gives her, how not to waste it and also, hopefully, to use some of her life chances to help others.

Then, when it is actually available to her, she will be able to calmly deal with it.

My 8yo became aware she had approximately £10k in the bank recently. After the initial excitement...she understood it wasn't just to spend wily nily. Its for university or a house...or for education in their teenage years if they need specialist equipment or a sports tour etc.

We told our DS when he was around 18, it wasn't actually an inheritance but money that had been invested for him (by generous DGPs) for the specific purpose of either university costs or a deposit for his first home, we wanted him to be able to thank his DGPs and acknowledge the gift before it was too late ... he hasn't been given the money yet (now 20) & doesn't know exactly how much. But he is very good with money, has built up decent savings of his own for presents & part time jobs over the years ... if he was not so careful with money we might not have told him yet. He can't access the money easily anyway as it is tied up in Trust funds

My grandchildren inherited a five-figure sum each 4 years ago and were told then as it was part of the conversation re the death of a family member. They are now 13 and 15 and haven't mentioned it but it must be a nice feeling for them knowing there's a little nest egg. We wouldn't wait until they are 18 tbh as it will give them time time to get used to the idea.

How much? I would be tempted to purchase a house now with the inheritance so that renters can pay off the mortgage over the next 20 years or so

I would wait until she needs it. When I was 18 I might have used the money to travel the world. At 30 I wanted to buy a house and start a family.

After her education. You don't want her to give up on doing well at school because she knows she will be set up regardless.

Don't wait until it's imminently available, especially if the legal controls go directly to them. It's hard to understand larger quantities of money when you've never had that much so it's easy for a young person to think oh, I can spend a little bit on a holiday, I'll still have plenty left, or oh I'll just pay off this overdraft, there will be loads left, and sooner or later they're left with nothing at all and no idea what they spent it on.

Mention it early while they're still fairly sensible/able to discuss things and you should be able to have several discussions on useful options to use it for which should impress upon them that there is only enough for X, Y or Z, not all three plus some frittering as well.