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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to ask how you plan to protect your children's inheritance

242 replies

OrangeMabel · 25/04/2013 14:19

DD only aged 10 but my main goal is to make sure she has a home for life; with us whilst she's young then a house for herself when she's an adult. So I eventually want to make provision to buy her a house that can't be touched to pay our care home fees, should we need them.

Anyone else got similar goals for their kids and, if so, how to you plan to achieve them?

OP posts:
WadsCollop · 25/04/2013 14:21

I plan to teach my children to work hard to better themselves and to help other people when they can.

hth.

MrsTerryPratchett · 25/04/2013 14:21

I think home ownership is massively overrated and one of the reasons the financial situation in the UK and the US is as bad as it is.

I'm saving for DD's education. Let her buy what she wants with her salary.

bamboostalks · 25/04/2013 14:23

How do you propose to fund your care home needs, should you need them?

WynkenBlynkenandNod · 25/04/2013 14:25

I don't really. Current plan is to work on my health so it's as good as it can be in old age. Then to make sure I have enough so if/when I need care that can't be provided at home then I can go to a decent home and leave my children free to live their lives.

LadyBeagleEyes · 25/04/2013 14:26

What inheritance?
I live in an HA home, I'll never have anything to leave unless I win the lottery.
He's going to university this year, he'll have to learn to live like everybody else, like I did without an inheritance from my parents.

OrWellyAnn · 25/04/2013 14:26

I don't suppose it will need protecting, I can't see anyone else wanting my old blue guitar and grandfather clock...

LadyBeagleEyes · 25/04/2013 14:28

You have a grandfather clock OrWelly?

CockyFox · 25/04/2013 14:30

I pay off my mortgage when DS is 16 I plan to put the equivalent of 1/2 the mortgage payment into his savings and 1/2 into DDs (until I retire) it won't buy them houses but it will mean I have left them something if my house had to be sold for care fees.

Original poster
OrangeMabel · 25/04/2013 14:31

bamboo - how would I fund care home fees? With whatever assets/income I have. Making sure DD has a home is my priority - one that the authorities can't force a sale on. Just wondered if anyone has or is planning to do this?

OP posts:
Cavort · 25/04/2013 14:33

Let your DD buy her own house if and when she chooses to, she needs to learn to stand on her own two feet. You might think you're being nice but you'll do her no favours long-term.

Lilymaid · 25/04/2013 14:35

We made sure DCs had a good education so that they should be able to earn a decent wage. But, we have been fortunate and inherited from our parents - we may use some of that to help them buy their first property but will retain an interest in the property until they buy us out.

StrangeGlue · 25/04/2013 14:43

If you give her the money for a house and have it all in her name and died more than 7 years after having done so she won't have to pay inheritance tax on what you have her under current rules.

As long as her house is in her name she can't be forced to sell to pay for your care. If you want the house in your name ( ie to prevent her selling it) then it isn't technically hers so she could be forced to sell to supper your care.

I don't really understand why you're asking really. Are you under the impression that any family member can be held responsible for the care costs of another? It's only your own assets that can be used to assess how much you're entitled to.

The exception is if you gift more than £7k to someone and die within 7 years then they'll have to pay inheritance tax but the asset is there's so they wouldn't have to hand it over to anyone else for any reason.

Sounds like it'd be worth you seeing a financial adviser.

Teeb · 25/04/2013 14:43

If you are planning to purchase a property for her when she's an adult, you could put that into her name when you buy it? Then it would no longer be your asset, so long as you don't need care/die within 7 years of handing it over.

Original poster
OrangeMabel · 25/04/2013 14:54

It's "deprivation of assets" that worries me. Will seek financial advice in RL just wondered what other MNs were planning.

OP posts:
LessMissAbs · 25/04/2013 14:57

I plan to teach my children to be independent, value education and hard work and to make their own way in the world. That should arm them with the knowledge to protect their own assets as I have seen too many who have been given everything on a plate lose it due to their own ineptitude.

whois · 25/04/2013 15:01

The exception is if you gift more than £7k to someone and die within 7 years then they'll have to pay inheritance tax but the asset is there's so they wouldn't have to hand it over to anyone else for any reason.

Not 100% true.

You have a £3k annual exemption per year which won't be liabal for IT should you die in 7 years.
Additionally you can give away unspent income (so NOT proceeds from house sale) so you can give a regular 'allowance' to your DCs
If you have enough income left to maintain your lifestyle and are not eating into savings.

50BalesOfHay · 25/04/2013 15:01

Protect the kids inheritance? Nah, we intend to squander it on fast living and fun in our old age Grin

MrsSchadenfreude · 25/04/2013 15:03

I don't. I plan to spend it. Grin

50BalesOfHay · 25/04/2013 15:05

X post there, Mrs s. Woman after my own heart!

UnexpectedItemInShaggingArea · 25/04/2013 15:05

What Lilymaid said. I think it's odd in the extreme to expect to receive an inheritance. The most valuable thing you can do is support them to stand on their own two feet in the world.

I would be mortified if my parents gave me an inheritance and then relied on state benefits for care home fees etc. They brought me up well, supported me in full time education and then after that I was on my own (financially speaking).

MiniTheMinx · 25/04/2013 15:07

Antiques, I plan to get to about 80 and then have them delivered to DCs homes before I trot down the garden with my shot gun.Grin

ICanTuckMyBoobsInMyPockets · 25/04/2013 15:08

But she won't have to pay your care home fees?

Surely she can buy her own house like everyone else and you sell yours to pay the fees?

And if you buy her a house, if she ends up divorced, she may well lose half of it anyway.

Madamecastafiore · 25/04/2013 15:08

Maybe buy house wherever they go to Uni and rent out test of rooms in house to pay mortgage and sign over to dc once they earning.

DH was talking about seeing an IFA the other day, something to do with setting up trust in case he kicks the bucket but I didn't really understand what he was talking about.

higgle · 25/04/2013 15:08

We don't have a lot, though we do own our house. I have put a lot of money into my children's education and expect them to make their own way in the world. I shall be spending what is left on having a good time!

imour · 25/04/2013 15:09

i know loads of pensioners who have died in their own homes not needing to go into a care home , not every one ends up frail and needing help .