Children inheriting significant ££ at 18 - WWYD?

[Gameboy]

Firstly, I know they are incredibly fortunate.
My two DC, 17 & 15, were left about £300k in trust when my parents died.
My sis and I are trustees. She doesn't have kids and is very much a 'sleeping' trustee, in that she is happy to go along with what I suggest we do with the trust fund.

The trust was set up about 3 years ago and we invested £200k in a property which is now rented out and returns a healthy income.
The remaining £100k is in a variety of bank accounts/bonds. (So c. £50k each)
Income from the property is paid into Junior ISAs each year, which we'd also paid into previously, so each is worth around £30k.

At the moment neither of my DCs know about this trust fund or ISAs etc, although I have made vague references in the past to 'savings we have put aside for your education and future'.
DH and I took the view that we didn't want our kids to think that they didn't have to work hard for their future, and we didn't want them to badger us for money for x-boxes/computers/phones saying 'we know you can afford it from 'our' money'.

Thing is, DS will turn 18 later this year and so we will need to talk to him about this and begin to help him manage his own finances in the future.

I can't decide about the following:

• How to tell him e.g. begin to drip feed now about the various 'savings for education' etc or take him out for dinner when he's turned 18 and give him the 'whole picture'!

He will start to get all the statements and need to be named on the Land Registry Deeds for the property as soon as he turns 18, so he will soon work it all out anyway.

• Can't decide if I should move some of the easily accessible cash savings into more difficult to access investments as a means of safeguarding against him blowing large sums of money on a whim!

e.g. it's easier to go into a bank and withdraw cash from an ISA than it is to sell shares/investments through a broker!

He's pretty level headed, and I don't think he would do anything rash, but you just never know .

I also feel like I want to make a big thing about how lucky he is/ how grateful he should be to his grandparents and how they wanted him to use the money for his education/future deposit on a house etc.

Has anyone had to have similar discussions with kids? What did you, or would you do?

Does anyone know if a child inherits a large sum of money is there a bank account you can put the money in until they are older or does it need to be invested in some way.

I would seriously want to protect the money as long as possible, to do this you need financial and legal advice. I saw cousins with a lot less, on turning 18 friends came from all over as they threw the best parties. If you think at 18 what would you do with the money, think designer clothes, friends desperately needing help.

The plan should be driving / Uni or Apprenticeship, then deposit for a house. It sounds that this can be achieved without touching the investment property.

Seek sound financial & legal advice as to how you can tie up the money as long as possible so it doesn't get wasted. At any age they could acquire friends who think it's their God given right they receive a share in some form, so you really want it protected so that DC can learn to drive, get a car, get through Uni comfortably, acquire a half decent property,

You also may need counselling as a family with an unbiased intermediary, that highlights money does bring out the worst in people at any age. Your priority is seeing that your parents life's work is protected from such individuals.

If when the youngest hits 30 they decide to sell the investment property, you'd hope theyd be wiser at that age to put the money towards their children's future.

It sounds like you've done a good job in making sure they get enough of a pay back from the investment that the investment property might never need to be sold, they acquire what they need from rental income alone.