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A young man in possession of a good fortune
FinanciallyPerplexed
Posts: 48 Forumite
My wife died recently (we were separated), and my fifteen year old son will inherit a decent amount of money from her pension (60K+) and a share of the home he currently lives in (30K). The remainder will go to his 20 year old twin siblings.
This is quite a lot for someone so young, and although he is a bright, sensible young man, I am conscious of the potential hazards.
Does anyone have any ideas for sensible ways for him to invest and manage his money in case - worst case scenario - he goes off the rails. (He won't! But just in case.)
This is quite a lot for someone so young, and although he is a bright, sensible young man, I am conscious of the potential hazards.
Does anyone have any ideas for sensible ways for him to invest and manage his money in case - worst case scenario - he goes off the rails. (He won't! But just in case.)
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Comments
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His inheritance will need to be held in trust until he reaches 18 which rather limits where this money can be placed. 2-3 years is far to small a timescale to invest in equities , so that leaves cash and you will find very few options available too you (or who ever is acting as trustee)
You can certainly use NS&I for trusts.0 -
As he is under 18 it will presumably be managed for him by trustees initially. When the time seems right, it might be an idea for you to arrange for him to have a talk with a financial advisor.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
My step daughter has inherited from her Mum,Great Uncle and will inherit from her Gran in the future. I know no details other than the money is in trust until she is 25,controlled by her Mum's brother and BIL.Her Gran didn't want her to have access to the money until the university years have passed.She is 16 now and stands to inherit a substantial amount.I am sure people will have more concrete advice as to how to specifically invest it,but I think having an age limit is sensible.My s.daughter knows there is some money but not the amount(we know) so it will be a very nice surprise to be able to buy a house outright if she should wish to.:0
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My step daughter has inherited from her Mum,Great Uncle and will inherit from her Gran in the future. I know no details other than the money is in trust until she is 25,controlled by her Mum's brother and BIL.Her Gran didn't want her to have access to the money until the university years have passed.She is 16 now and stands to inherit a substantial amount.I am sure people will have more concrete advice as to how to specifically invest it,but I think having an age limit is sensible.My s.daughter knows there is some money but not the amount so it will be a very nice surprise to be able to buy a house outright if she should wish to.
Although many wills contain such clauses, once the beneficiary reaches 18 they can still claim their inheritance0 -
This is where my family have been major fans of trusts, for generations. It goes quite a way to ensuring the young get the benefits of their seniors' frugal ways without setting said young up for too much trouble.
My 16 year old had a life insurance policy mature on him & had a hard lesson in how money attracts all sorts of critters. If I could have wrapped it into a trust & held onto it, I would have done - he's become both a bit daft and a lot cynical.0 -
I understand my son is set to inherit when he reaches 16 (in June). Is this a difference in Scots law?0
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FinanciallyPerplexed wrote: »I understand my son is set to inherit when he reaches 16 (in June). Is this a difference in Scots law?
You are correct, he will have access to the money from his 16th birthday.0 -
So any concrete suggestions?0
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Only advice is to try and ensure you teach him the value of money so that he doesn't blow it as he will be able to access it within a couple of yearsBe Alert..........Britain needs lerts.0
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Since you were still married wouldn't the pension be paid out to yourself rather than the children?Be Alert..........Britain needs lerts.0
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