Buying Property for Children???

TJ27

Crikey, I never knew that thing about the £100 interest MrsS. Interest was paid recently and it was a good bit more than that! Thanks. Although I've never actually done a tax return and am on PAYE.

I think I do need to and see somebody who can advise me of the details.

Bossyboots

TJ27 wrote:

Crikey, I never knew that thing about the £100 interest MrsS. Interest was paid recently and it was a good bit more than that! Thanks. Although I've never actually done a tax return and am on PAYE.

I think I do need to and see somebody who can advise me of the details.

It is up to you to declare the extra income whether you receive a tax return or not. You definitely need some proper advice on financial planning. You don't want the tax man after you for failing to declare although I don't know how closely they monitor savings accounts to check on this sort of thing.

Phil_rich

I would say a trust fund would be a good idea for you, you could then state at what age you want the money to be released to them. Maybe you could set it up so it was staged so x amount at 18, y amount at 21 and the balance at 25.

Just my 2pence worth, but good on you for planning ahead for their futures and I totally agree with you about not wanting to give them a very large sum at a young age.

Phil

Nenen

I agree with PPs that you need to get professional advice for the amounts of money you are talking about, particulalry given the situation regarding your wife (very sorry to hear that).
I don't know if it is relevent but, when my dh and I made our wills, we had very similar thoughts to you regarding the inadvisability of teenagers having access to relatively large amounts of cash. Therefore we arranged that, in the event of us both dying before the children were adults, the money we would leave them would be put into trust until they were 25. Our solicitor at the time (this is 21 years ago now) told us that 25 was the oldest we could go to.

We figured that by 25 they would have gone through the likelihood of squandering it all on something that would damage them (drink, drugs etc) and be more likely to use it wisely for their benefit. However, we did put in provisos that should their trustees feel that money was needed for something beneficial (e.g. university fees) then that part of the money could be withdrawn earlier than 25.
Good luck:beer:

RHemmings

TJ27 wrote:

I just thought that this might be one way of reducing the likelihood of them going off the rails when they are older? Perhaps I'm mistaken. I don't really know. What would you do? Should they get a big pot of cash or perhaps a house when they are older? Or something else maybe? Or should I just stop giving them money because it will ruin them?

If you put it like that, I'd start giving them small amounts of money early on, and seeing what they do with it. I have a son slightly older than yours, and he gets some money. But not pocket money, he has to do something to earn it. Age-appropriate of course. At present he keeps it in a jar, and is saving up for something. I would hope the lessons of money not coming easy, and that it's worthwhile to save it to buy things he really wants, will sink in. I've even done things that some might think scrooge-like, when I've said that if we walk to the supermarket, instead of taking the bus, that he can have the bus fare to spend when he gets there. He tends to choose the 1/2 hour walk! Of course, there's no guarantee that any of this will work, but I'm certainly not thinking the worst (in terms of financial sensibility) just yet.

My opinion, for what it's worth, is that giving them money could lead to quite the opposite of ruining them, if even from a young age they get to have their own money in their hands, and sometimes waste it, and sometimes use it wisely, and learn from that. Rereading what you've written, is the situation that they will have no money, then suddenly will have a large amount?

I'm very sorry to hear of the situation you find yourself in concerning the childrens' mother. I wish the best for you and your family.

TJ27

Yes, I think you're quite right there. At the moment they get virtually no money actually in their hands but quite a lot of money going into their bank. I'm not too worried about that immediately but I will need to redress the balance a little bit as they get older.

It seems to be going from having no money to having a lot of money that freaks people. Lottery winners for example.

Thanks everybody.

TJ

reehsetin

Nenen wrote:

Our solicitor at the time (this is 21 years ago now) told us that 25 was the oldest we could go to.

think that has changed some of my grandads money has been locked away until us cousins are in our 30s!! so we can learn how to work for our money and then get a nice bundle

simonne15_2

Whilst the advice re consulting solicitors is good, R. Hemmings is also wisely saying its about teaching children how to deal with money.
There's plenty of info out there e.g. relevant parts of National Curriculum 'Citizenship' and also in the Maths Curriculum especially in Problem-Solving which would guide you.
Having been in the maths education field for years I know that we have still a national problem with what we call 'word problems' where it helps to discuss the pros and cons of decisions about money. We start with really simple things with the youngest children like yours with (most importantly) situations which are relevant to them in everyday life. Parents spending time to talk with them about e.g. which price is best value etc etc is invaluable as its a long slow process of building up to the sophisticated decision-making levels adults have to deal with.
Try looking at this link: http://www.standards.dfes.gov.uk/primaryframework/foundation/psrn/ and then if you wish explore further into the maths curriculum for specifics.

neverdespairgirl

I'm very sorry to hear about your wife; best of luck for her treatment.

I think a large sum of money at 18 or so can do a person no favours. I know of 2 people who that has happened to - a friend of OH's, from uni, and OH's brother. In both cases, their parents died when they were under 20, and over 18. (OH was 26, and his brother 19, when their parents died 3 years ago).

Neither had ruined his life, or snorted it all, or anything. In OH's mate's case, though, he just lazed around, did very little, and has now spent almost all his cash and is 30, without having really done anything.

I think it's a great idea to teach children the value of money. When I was a teenager, for example, I got a monthly allowance that had to cover any socialising, clothes, etc. Didn't include school uniform or shoes, though. In return, all 4 of us had jobs to do around the house. Getting £X at the start of the month when you are 13, and learning to spread it out over the month, save up for something, etc, is all great training, I think.

geoffky

I know of three people who have been cursed with being left money at a earlly age and its all gone now and so have all their friends...if it was me i would not let my kids have anythink over ten grand at a time until they are over 27 ish...and i know of one guy who is a multi millionaire whose daughter asked can she have her inhertance now so he could see her spend it..ps she was 18..