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Original poster

Inheritance for (very) young adults

53 replies

starsorwater · 28/04/2017 14:30

My dcs (Over 18 but not yet reached the stage of reason) are due to inherit a sum of between 5K and 10K from gps. The money actually comes to me and dh, but we were asked to split it between dcs and of course we will. Don't want it in our accounts- it's not ours in any sense but name. How can we put it in their names for 5 years time? And could this possibly be done without them knowing? Can you buy bonds? Shares? Gold?
If they have it now it will vanish on bits and pieces and booze and parties. In a few years it might be really useful. Please, any advice?

OP posts:

WeAllHaveWings · 28/04/2017 14:39

They are over 18, you cannot open accounts without them present.

The only way to keep it is to keep in your name. Is there a reason you can't keep it in your account?

Frankly they are adults, if it's their money I'd give it to them with some advice on how to manage it. If they fritter it away it's their adult choice. If your parents wanted them to have it later they should have bequeathed it directly to them with instructions it would be kept in trust until they were x age, their lawyer would have advised this.

IDismyname · 28/04/2017 14:41

Could you not open a 5 or 3 year bond - in your names, but with the money separate? It will earn interest, and mature in time.

skyzumarubble · 28/04/2017 14:41

Did the gps stipulate it was to be held until a certain age? DH and sil got a fairly chunky inheritance aged 18 and managed not to fritter it.

Original poster

starsorwater · 28/04/2017 15:21

Gps were very old, many years between making will and death. They counted on us to share it out- they thought it would be useful for house buying. That's all they said. That is a few years ahead for dcs.

Frankly you're right, they're adults in law. But many 18 year olds are not very adult I find. Their brains aren't properly wired until 25! I'm told. Unless my dcs are more immature than most. Anyway, they're not at the house buying stage yet.

OP posts:

IHaveBrilloHair · 28/04/2017 15:23

Dd is getting a large sum at 21, I'm not remotely happy about it, I'd rather she was 30 but nothing at all I can do.

Original poster

starsorwater · 28/04/2017 15:29

Brillo but as Wings said she is an adult. Only in fact, 21 isn't adult. My 19 certainly isn't.

OP posts:

ofudginghell · 28/04/2017 15:30

My gp passed away last year and my df inherited a third.
In the will he was asked to give accordingly to each of us two grandchildren and the four great grandchildren but left it to my dads discretion on how much and how.

My dsis and I were given a sun of money each to do what we wanted with.
Each of my children were given a cash amount to spend on what they wanted and a more substantial amount for something bigger.
My youngest two dd had theirs put in a trust fund but my eldest was already 18 so he chose a car and my dad paid for it along with the tax insurance some lessons a theory test and a practical test.
At 18 if he had if had the money there's no way there would be a car in his name all taxed and insured and he wouldn't have got as far as taking a test as he's quite bad at frittering money away.
Could you not do something like that?

doggonedoolally · 28/04/2017 15:34

You can put it in a trust which dictates the terms of the release of the money be it at a certain age or whatever.

Original poster

starsorwater · 28/04/2017 15:37

Yes, perhaps. Only don't know where running cost of a car would come from afterwards, not practical while at university (in London).

I suppose we are going to have to put in savings in our names for the time being. That doesn't feel right though.

OP posts:

Original poster

starsorwater · 28/04/2017 15:39

Sorry, doggone didn't see you post. Can you do that? What sort of trust? That would be a much better solution.

OP posts:

ImperialBlether · 28/04/2017 15:45

The money has been left to you, then, but you were asked to make sure your children got something? I would keep it in your own name now, then, and give them a certain amount when they are at the stage of wanting to buy a house.

IHaveBrilloHair · 28/04/2017 15:49

starsorwater
I agree with you completely, but as Dd's money goes straight to her there really isn't anything I can do, or I'd do it!

Original poster

starsorwater · 28/04/2017 15:54

IHaveBrilloHair
I'm glad you understand anyway! We're not being mean, and trying not to be controlling. If they were 25 even it would be different. And there are no more windfalls on the way for them.

OP posts:

Pallisers · 28/04/2017 16:06

I suppose we are going to have to put in savings in our names for the time being. That doesn't feel right though.

As long as you are both clear about the money being intended for your children, I think it is fine. Better than the alternative which is it going into their names and what could be the start of a deposit on a house goes on beer and parties.

My 20 year old was given a decent sum of money (enough to buy a good car - that was the intention when it was given) when he was 18. He can't have a car as he is in uni downtown and no parking. Luckily he agreed to put it in a longterm savings account. I'd prefer him to buy a crap car like everyone else when the time comes and use it as the beginnings of a deposit on a house.

Teabagtits · 28/04/2017 16:16

You could put it into a trust to be released at a certain age

IHaveBrilloHair · 28/04/2017 16:18

No, not controlling or mean at all.
I'd rather Dd was 30 as I can see her not making great decisions and then when it comes to house buying/having children time realising that 20k would be quite handy.

TeenAndTween · 28/04/2017 16:21

If it has been left to you in the will then just bung it somewhere in your name until you feel they are ready for it.
If GPs had wanted them to have it directly they would/should have willed it to them directly.
I personally don't think it is worth the effort of trusts for that amount of money.

kath6144 · 28/04/2017 19:04

Why dont you sit them down, talk to them about what they will need the money for later on (house deposit?) and then get them to open a stocks and shares ISA each, that you drip feed the money into monthly.

Get them to think of it as a long term investment from Day 1, get them involved by choosing a small no of funds to put the money into. Drip feeding should iron out peaks and troughs of stock market.

Yes, they can still access it BUT if done through one of the fund supermarkets, its not like producing a book at a bank and asking to withdraw x amount. They have to make the effort to decide how much of a fund to sell, and with the right attitude to the money upfront, hopefully wont do that.

Both my DC have inherited (directly, from a cousin of mine) almost 6 figures. From the day we knew they had some money coming (they were 17 and almost 15 at time) we started to talk about how lucky they were, how it would help them etc. Once they got a probate summary and we knew the potential amount, we stepped up the talking, this is your house deposit, you are both so very lucky etc. (The inheritance was unexpected - although my cousin, a bachelor had indicated maybe leaving his money to cousins children, it was by no means certain and no one in family knew extent of his wealth).

DS got his just after his 18th and has been drip feeding it monthly into his S&S ISA, with the remainder in fixed term bonds ready for the upcoming years. If anything, the money has enabled him to become more financially astute at a young age, researching funds and looking at bond rates with me.

DD is almost 17, we got control of her money from solicitors 6mths ago, so we doing same, although its a much lower limit in Junior ISA. On her 18th next year, she will have full control of all money but will hopefully follow our guidance and do the same as DS is doing.

I think a lot is made these days of young people not being able to control their spending, but maybe they need to be helped along the road to keeping savings and investments when they are lucky to have them?

Icequeen01 · 29/04/2017 09:21

My DS was 14 when he inherited a largish sum from my DF. We were originally the trustees of his money but got my DS to open up an account in his own name when he was 17 as his money had tax implications for us as we also have some savings. From he outset DS was told about the money and told it was a house deposit. We did let him buy a computer he wanted just so he could enjoy something out of his money but he hasn't touched it since and doesn't show any interest since, it's as though he has written it off in his head. He will be 18 in December and we have said we will help him reinvest the money somewhere where he will get a better return. He's a sensible lad and I don't worry about him frittering it away.

However, I have a friend who had paid into an insurance policy for his son so he had a small lump sum at 18. I think he received around £10,000 and I still remember my friend's utter devastation when he learnt his son had spent it all within 6 months and had nothing to show for it!

TittyGolightly · 29/04/2017 09:25

Brillo but as Wings said she is an adult. Only in fact, 21 isn't adult. My 19 certainly isn't.

I'd be hugely disappointed (in myself) if I couldn't consider my (future) 18/19 year old as an adult. I bought my first house (from saved money) at 19!

Original poster

starsorwater · 29/04/2017 10:06

TittyGolightly

You must have had a wonderful mother. You're right, I've obviously done something wrong.

Thank you everyone, Kath that's good advice. Thank you.

We didn't know that we would be in this position when they were early teens, when they would have been much easier to influence.

OP posts:

TittyGolightly · 29/04/2017 10:13

You must have had a wonderful mother. You're right, I've obviously done something wrong.

Far from it. My dad properly prepared me for life.

LovingLola · 29/04/2017 10:18

My children each receive €3,000 annually from their grandmother. This has been happening since they turned 13 so 8 years in the case of ds and 4 in the case of dd. They keep €300 to spend as they wish and save the remainder. They each got €35,000 when their grandfather died so that has gone to long term savings accounts. There is another €35,000 coming to them later this year from another inheritance...again to be paid to them. Again it will go into long term savings.
They are bloody lucky kids is all I can say!!

CrabbyJo · 29/04/2017 10:24

I would set up a savings account in your name to put it in and not tell them until you hand it over when they're older. I inherited 50K when I was 25. I was married with two children, so you'd presume mature and sensible. It was gone within 18 months. I have absolutely nothing to show for it. I think 30 is the age where I would have been sensible. It was a life changing sum and all I used it for was holidays and shopping. Biggest regret of my life.

EssentialHummus · 29/04/2017 10:32

I would set up a savings account in your name to put it in and not tell them until you hand it over when they're older.

I agree with this. I was one of those kids that was always frugal/tight with money, but if mine aren't I'd store it away from them until at least the end of uni, personally. Otherwise a conversation along the lines that kath suggests sounds a great idea.

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