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  • FIRST POST
    • Entsman
    • By Entsman 29th Jan 18, 4:48 PM
    • 26Posts
    • 0Thanks
    Entsman
    Where oh where to invest
    • #1
    • 29th Jan 18, 4:48 PM
    Where oh where to invest 29th Jan 18 at 4:48 PM
    Hi all

    My 2 boys ( 6&3 ) have some inheritance ( £150,000) I would like to make it grow for them, thought about buying and renting a property (about 5k per annum from rent) and of course capital growth from the property and looked at putting 50k in Halifax at 2.5% 20k in nationwide and the rest left with hsbc...bringing in about 3.5k with no risk, any other ideas please?

    Thanks
Page 2
    • MallyGirl
    • By MallyGirl 6th Feb 18, 3:57 PM
    • 2,472 Posts
    • 7,465 Thanks
    MallyGirl
    reading all the posts fund investment seems to be the best option but I’m always wary of a shiny suit.. I think I will talk to a FA, I have seen companies online like “ easy invest” etc but again am wary about handing over my sons monies
    Originally posted by Entsman
    Make sure it is an IFA - Independent Financial Advisor
    • cloud_dog
    • By cloud_dog 6th Feb 18, 5:12 PM
    • 3,508 Posts
    • 2,029 Thanks
    cloud_dog
    Yes I have and the stocks & shares isa also..worried that if we have horrible 18 yr olds they may spend spend spend..
    I am thinking for now of putting 50k in nationwide 2.5% pa
    20k in Halifax 2% pa until I do more research into fund investments
    Originally posted by Entsman
    I'm not sure you are grasping the point that it is their money, and you will have no control over it.

    EDIT: The grandfather really needs to re-consider what / how he is doing this. Placing it in a trust with you (for the children) might be better.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • IanManc
    • By IanManc 6th Feb 18, 5:25 PM
    • 440 Posts
    • 670 Thanks
    IanManc
    Good point but children are not allowed to own property in the uk until they are 18 so it would be sold before they reached this age avoiding them both having any legal involvement in the property until then.. From our point of view it would act as capital investment with the bonus of rental income achieving a much higher yield at this present time than other investments on offer..
    Originally posted by Entsman
    You didn't take on board what I wrote about the legal problems of buying a property being insurmountable, did you?

    And you should consider this: you are not entitled to take your children's money and buy a property in your own name with it, whatever you say your ultimate intention is.

    You need to keep this money separate from yours, and either in the children's names or in trust for the children.

    These are not difficult concepts to grasp.

    • ValiantSon
    • By ValiantSon 6th Feb 18, 9:10 PM
    • 843 Posts
    • 680 Thanks
    ValiantSon
    Hi xylophone

    Their grandfather basically gave this money to them as his FA said he needed to get shot of some of his money as the only person benifiting was the tax man.. I think we are bare trustees and as both boys are very young our solicitor said we can do what we want with the money as trustees but we want to make it work for them obviously...
    reading all the posts fund investment seems to be the best option but I’m always wary of a shiny suit.. I think I will talk to a FA, I have seen companies online like “ easy invest” etc but again am wary about handing over my sons monies
    Originally posted by Entsman
    Really? Time to find a new solicitor!
    • IanManc
    • By IanManc 6th Feb 18, 10:57 PM
    • 440 Posts
    • 670 Thanks
    IanManc
    our solicitor said we can do what we want with the money as trustees
    Originally posted by Entsman
    I don't believe for a second that a solicitor would say this. Either the OP has misunderstood or the rest of the advice is being withheld to create an impression that supports the OP's investment whims.

    A trustee cannot do what they want with trust money. They have to keep it safe and act in the best interests of the beneficiaries - who can sue them if they breach their fiduciary duty.
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