Loan From Your Kids?

dieselhead

I think the OP is determined to do this, so my advice would be to make sure that the child is protected.

OP the answer is NO you cannot use the money for 'expenses'

However I personally think that if the OP is that determined to use his daughters money to pay off his mortgage, she should have a stake in the property, so for example if the property is worth 100k her £10,000 should equal a 10% stake. This should be drawn up by a solicitor and she should have the right to the market value of her percentage upon her 18th birthday. There is a very good chance that the property will increase in value over the next 11 years and she should be guaranteed a good return on her 'investment'.

Although I have offered a solution above I still believe that this is wrong and the daughters money should be left in a high interest savings account untouched until she comes of age.

Destroyer

I would of thought the persons that left this money to your daughter would of thought this be used to give her a helping hand when she had left school/education later on in life for a better start if you like ?? I'm pretty certain they would not of left this money to be used as 'expenses' or to fund her upbringing by you ?? They obviously already trusted what they thought were good honest people to oversee that & named yourself as a trustee. How wrong they have been - Shame on you, they would probably turn in their grave if they knew what people you really are. This money is for your Daughter - not for you. Lucky for you are anonymous on here. Best thing is to leave the money in a good high rate bank account & forget about it as others have already stated.
Also i believe children pay lower tax on their savings than adults, but dont quote me on that ??

RobertoMoir

dieselhead wrote: »

However I personally think that if the OP is that determined to use his daughters money to pay off his mortgage, she should have a stake in the property, so for example if the property is worth 100k her £10,000 should equal a 10% stake. This should be drawn up by a solicitor and she should have the right to the market value of her percentage upon her 18th birthday. There is a very good chance that the property will increase in value over the next 11 years and she should be guaranteed a good return on her 'investment'.

And if the property's value doesn't increase over those 11 years? Would the daughter's "share" then represent a loss, or would they get a larger portion of the house to ensure they recovered their £10k? In the event of that going wrong, what about the interest the 10k would have "enjoyed" if invested in a more conservative manner, one that didn't benefit the trust administrators?

If you are administering money on behalf of someone else then any actions taken with it should only be done with the best interests of the beneficiary in mind and nothing else.

I'm sure you're already aware of that and I understand what you're trying to do... "If the OP is gonna do it anyway then..." right? But there's no way to make it right imho.

claire0788

steadynerve wrote: »

Thanks for the replies.
Yes as bitter and twisted indicated - a six year (she is now 7) old cannot give consent. So the option of a legal document loaning the money cannot work. This is why i think the only legal option is legally taking the money for expenses.

Once a gift is made it becones the childs money so i dont think its possible for the donor to change there mind later and say oh its for the parent. Unless there really was a nistake to start wtih ehich thre is't.

I'm bewginning to think its legally ok to taje the money as long as it is spent on the chid. As when people are given birthday money for a child they dont have to save it for ever they can spend it toys or shoes etc as some posters have mentioned.

So if toys and clothers are ok, i presum food and even rent are probably ok as well? As when older children give housekeeping this money presumably covers food and housing costs as well.

Why on earth do you want to charge your child rent ! When your child is old enough and find out what you have done I assume they will be mistrusting of you to say the least. I suggest you find a more suitable way to pay for your childs needs and leave THEIR money alone as they cannot give concent for these actions to take place.

pineapple123

Been reading this post with interest and I would like to know how the OP is so sure that they would be in posititon to pay back that money when daughter is 18 anything could happen in that time,relationship breakdown, ill health, unemployment, leading to downsizing home before child reaches 18 what would happen then.
None of use know the future but this money could make a great difference if invested wisely for your daughter.

Would it not be a better Idea to look at ways to pay your morgage off early with help from the Morgage free wannabe site on here.

Tom_Saunders

This thread had better be a wind up. Jesus, expenses for Children ? Are you for real, I hope Social Services don't get involved.

Wutang_2

I think we need a few more people to say how disgusting the bahaviour is

[Deleted User]

Let's sort out some right from wrongs and provide the OP with some actual advice:

STEADYNERVES - let's jump forward 20 years into the future, for a moment.

You've spent your child's money, but for some reason, you haven't paid it back. This is what I expect will actually happen.

a) Your daughter as a beneficiary of the trust can take remedial action for specific performance and can follow through those funds into whatever you've wasted them on. So, any court would quite readily trace the proceeds of the trust into your property and she would have an equitable stake in that.

b) if the property has decreased in value, then she would have a claim as against you for misadministration of the trust and could compel you to restore funds to it.

c) this also ignores the fact that what you are doing is unlawful. For a 1000th time on here - YOU DO NOT OWN THIS MONEY AND IT IS NOT YOURS TO SPEND. YOU CANNOT OBTAIN IT LEGALLY.

NOT YOURS.

YOU DO NOT OWN IT.

IT'S YOUR DAUGHTER'S MONEY.

Removing money = theft.

ILW

This seems like a middle class version of the Shannon Matthews story.
I believe Karen Matthews used very similar arguments to justify her actions.

sazzybum

Wish I could find the thread, but I'll keep looking, see if I can find the link.

An 18 year old girl was telling about how she (and her brother I believe)had been left 10K each for when they hit 18 (or 21..wish I could find the darn thread) but when she checked..there was only 5 or 8K left. Her mother was a trustee, and muttered something about a mortgage. The girl now doesn't talk to her mother because of this, and there was talk of police, solicitors etc.

A voice of things to come for the OP possibly? As soon as I read it I should have linked it, but I procrastinated. Hope someone lese remembers the thread