Do you lend or gift money to your adult children?

[Nextones]

Hi,

for those of you with adult children, do you ever loan/gift them money?

if so, does it cause any issues- not repaying etc?

I gift money to my adult children, yes. DH and I are comfortable and can afford it, and it makes us happy to be able to help them out. My own parents did the same for me.

Give where I can. Amounts like £10k+ would be a loan.

My parents only ever gave me money. I guess it depends on how wealthy your parents are and how much money we are talking about. My parents gave me quite a lot as a deposit for my place. I would not be able to save this much, ever.

That is exactly what I have done. They have both given me a contract for the deposit so I own part of their property in the event of a split. They are an accountant and a lawyer and say it is the right way of going about it.

Car repayments are given to me at the beginning of every month.

I am also generous to GC every birthday and Christmas. I am happy that I can afford it at the moment.

DS and DiL were going away and I gave them the money to pay for a nice dinner. DD is single and travels with me and I often pay more than 50%.

My parents regularly give me money because they’re trying to avoid inheritance tax. I gift my son money for Christmas/Easter, birthday, but he hasn’t really got any need to borrow money at this point as he still lives at home and has a job. We don’t charge rent. I don’t know if we’d ever loan our children money, it would be more a gift situation I would think.

We passed both inheritances from our 90-year-old DMs via deeds of variation and gave DC a large chunk of the tax free lump sum from our pension savings when we thought the rules might change to restrict the value we could take out. It has bought a modest 2-up, 2-down house in the Midlands. We have to live another five years for it to fall out of our estates for IHT purposes though. We're both 70, and still working part-time.

We give whatever we can to our young adult DC. As others have said, I get pleasure from helping my DC out.

My parents are quite well off but have never gifting me anything. I like to give my kids whatever I can and if I had more I would give more.

We don't have to do it very often, but when we do, we give it to them and don't expect repayment.

We've done both - gifted some, loaned for other things. It depends what it's for.

Never loaned but have gifted on several occasions. Paid solicitors fees etc when they purchased a property (but couldn't run to the full house deposit) and a couple of bigger than usual cash birthday gifts. We won't be, like most of the population, in IHT territory so don't really think about gifting on that score. DC and his partner both earn well but not mega money but if I felt they needed help I would give it if I could. DC has never asked for money.

I think most of the population is confused about the level of wealth you need to have before inheritance tax kicks in.

always gift never loan

Im 31 and my parents don’t really lend us money as we aren’t in need but they would if we were in need of it. They’ve said they would like to help us with our next house purchase so that we don’t necessarily need to get a bigger mortgage which will be incredibly helpful. They do spoil us a lot, lots of meals out (usually at least once a week), mini breaks away and sometimes a treat in the shops etc. We’re super lucky and very grateful to them, my dads retired now but my mum is still working in a high paying job so they always say they like to treat us while they can still afford to as they’ll inevitably have to tighten their belts a little when she retires.

We gift to reduce IHT.

Me too!
I have found it more difficult with adult step children who have been brought up to expect money.
A SDC who constantly asked, short at the end of every month, caused huge problems. Totted up, the total loan was just over £17000.

It created tensions, it created a tie to this married couple that shouldn’t be there for independent adults. It created awkward conversations, how could they afford a holiday or private number plates for the new car, when they couldn’t pay their mortgage at the end of the month or pay back any of the loan.

Not nice times, we really didn’t want to be in a position of them being indebted to us or to be involved in any way in their finances.

This thread is very showy-offy 😆

Eta and the OP never came back!

I give them money and don’t expect it back. But it’s only small amounts like £50 every so often.

Im always surprised when I read this threads, my mum has never given me any money since being an adult (not that I’d ask) and once printed something off for me and asked for the 40p back (shes not poor)

Another mumsnet creation? There’s a lot of threads about parents giving money to adult children. It astounds me. Apart from helping young adults with house deposits and cars I don’t know anyone who admits to the frequent funding of adult children in real life.

Another mumsnet creation?

On the Higher Education board they either pay their kid's tuition fees or accommodation or both. Showy-offy.

This

DS doesn’t need to borrow money as he lives at home for free and has a job. But I pay for meals out and give him extra spending money if he goes on holiday. Plus a generous cash gift for Christmas, birthday and Easter.

I gift amounts up to a few hundred. But DS needed a car about 3 years ago, this was a loan which he paid back.

Why do you ask?