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Original poster

Good idea to use my dc inheritance to buy dm’s house?

229 replies

Billi80 · 06/01/2025 18:37

My dc is only 9 and is about to inherit money. Would it be possible to use this to buy my dm (her dgm) house via a trust fund? My dm (her dgm) is very short on money and would give her a bit of respite in her later years. As my DD wouldn’t have access to the money till she is 18 it seems a better investment than ISAs, etc. Or is this idea bonkers?

OP posts:
HollyKnight · 10/01/2025 17:48

UndergroundOvergroundWomblingFreeby · 10/01/2025 15:13

@HollyKnight
If the parents are living in the UK and the father has assets under £23k then the local authority will have to at least contribute towards the costs of care even if it is a private care home. If he has less than £14k they pay all and he will have to use his pension/s apart from a small weekly allowance.
Most care homes in the UK are private. Nearly all of the local authority run homes were closed years ago, sadly.
While the mother is still living in the marital home then the house is disregarded from his financial assessment.

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I know all that. I'm addressing the people who keep asking why is the mother paying for anything for his care. She's paying for his care because she put him in a £70k-a-year private care home. The LA will only cover so much. Someone else has to cover the rest.

MrsScarecrow · 10/01/2025 19:29

postuna · 10/01/2025 09:52

The annual limit for junior isa is £9000 though, so it would take a long time to drip feed an amount that would pay for a London house.

You invest in a Junior Stocks and Share ISA and drip feed every year the £9000 or maximum available and in 10 years to you will have a pot of +£90000 - the interst is tax free, A long term investment. Definitely need a financial adviser to make the maximum from your capital especially where to invest outside an ISA.

postuna · 10/01/2025 23:38

MrsScarecrow · 10/01/2025 19:29

You invest in a Junior Stocks and Share ISA and drip feed every year the £9000 or maximum available and in 10 years to you will have a pot of +£90000 - the interst is tax free, A long term investment. Definitely need a financial adviser to make the maximum from your capital especially where to invest outside an ISA.

Show quote history

The amount in the trust is enough to buy a house in London, so I'd guess at least £500k? So the suggestion of investing it all in a JISA won't be possible, because she can only put a small fraction of the total amount in per year. The majority of it will never be able to be put into a JISA because of the annual limits. Some posters have suggested putting the inheritance into JISAs instead of into property and that won't be possible.

The amount outside of the JISA could still be invested in stocks and shares of course, but it would be subject to the same capital gains tax as property.

PlopSofa · 11/01/2025 17:22

S&P500 tracker - goes up on average 11% a year. Look at the historical data.

Drip feed into that OP.

And you have my sympathy on the care front. It is so very very expensive. If you can bring your DM closer to where you are it makes life easier I found. And I’m sorry to hear about your M&D. It’s a very cruel time of life. Strength and courage to you.

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