Loan From Your Kids?

nikki2804

I once borrowed £20 from money that was given to my little boy and I felt so guilty until I paid it back. I think I actually put double back in (not to bad an interest rate) but that was when he was just born and it was the only money in the house (I gave my mum the cash IYKWIM?)

I made sure that as soon as I was able to I replaced the cash (plus more) but I felt so bad until I had. If I felt that bad for £20 I can't imagine how bad I would feel for 10k.

And rent? Erm she's 6!! A minor who is deemed your responsibilty - if you want cash from her then use the child benefit and TC (I do, child benefit buys the milk and nappies while TC goes into an overflow account incase he needs anything major - if not used in 3 months it goe into his savings account!!)

Long winded I know but in short - don't do it, its not yours!

LilacPixie

steadynerve wrote: »

I was thinking can we use this money to pay off the mortgage on the house. It does seem strange to be paying loan interest on one hand and recieving less on savings in the other.

This would be true if it was your savings. It is not you with savings however, it is your daughter savings not yours.

jennihen

I'm going to borrow money from family but only with a properly drawn up agreement. I'm paying a competitive rate of interest. Is there a neutral family member who could 'oversee' this in your case? If your daughters' interests are protected and you all benefit I don't see a problem. (Mortgage paid off, better standard of living, daughter has a higher return than the banks would give her)
Rent? - that sucks but you are obviously have to consider all options . . .
Happy New Year

JH

aliasojo

steadynerve wrote: »

I was thinking can we use this money to pay off the mortgage on the house. It does seem strange to be paying loan interest on one hand and recieving less on savings in the other. And our daughter obviously lives in the hose.

It doesn't seem strange at all. You're forgetting one very important fact.......it is not the same person who has the mortgage and the money.

The was the reason for adking is it legall to borrow the money from our daughter to pay off the mortgage. it would make financial sense it wanlt a joke.

Alternarivel if loans were not legal could we charge the daughter rent to allow us to acquire the monety this way to pay off the mortgage.

Absolutely not. This money was not given to cover your mortgage.

I would still want to do the right thing morally so would be happy for us and the daughter to discuss the issue when she is old enogh and make sure all sides are happy with the arragement and if not put it back to how it would have been.

How could you possibly put it back to how it would have been?

I can see why you might have thought there would be a way to benefit from this, but the simple fact is, there isn't. The only person who should benefit is your daughter.

NYGiants

steadynerve wrote: »

Hi

I know its usually trhe other way round but

Our 6 year old girl has acquired £10,000 from a relative and it is in a childrens saving account with us as trustees.

She is 6 and is richer than us!!

I know we can take out the money and spend it for the benefit of the child.At the monent we use it for her expenses.

Can anyone advise on what we can an cannot do legally with this money?

For example could we take a loan from our daughter and pay it back at a commercial but reasonable interest rate?

Could we charge her a rent? I know this sounds terrible but it would help us out a lot and we could try and make up for her later.

Any advice appreciated.

You're a disgrace! :mad:

doelani

The OP was January 2009 seems strange to resurrect it almost 12 months later

2010nodebt

When I was 11 I won £50 on premium bond ,, My Father said he would pay it back.

When I was 21 my father got 30k from a house I owned by remortgaging without my knowledge , I ended up losing the house.

6 YEARS ago my father bought a machine from me for 38000 , took it and bounced the cheque.

NOW I am 40 and have not spoken to him for 3 years, and never will .

Dont go there ,, be a parent .

greenface

stop a stranger in the street and ask them to pay your mortgage. What would they say. Because it is your baby daughters you feel it is yours ??/ puzzled not morally right what are your daughters expenses your charging her for ?? Just take it all and tell her it was a tenner if you want to rob her. steadynerve my harris SOMENERVE maybe more apt

aliasojo

doelani wrote: »

The OP was January 2009 seems strange to resurrect it almost 12 months later

I didn't notice that. I agree, very strange. Probably a load of trolling rubbish then. :rolleyes:

RobertoMoir

aliasojo wrote: »

I didn't notice that. I agree, very strange. Probably a load of trolling rubbish then. :rolleyes:

Didn't notice it either