My kids will only ever own a property if their g/parents leave them massive amount

TJ27

I think it's a good thing to start planning for your childrens' future very early on. My wife and I have been putting a bit aside for our kids each month and it has really mounted up. And I guess a bit of inheritance planning is a good thing too.

But whatever you do, don't bring inheritance into your personal wealth equation. I've seen so many huge family break ups which have been down to money and it's just not worth it. As Silvercar says, inheritance is not a right. People are free to do whatever they choose with their money.

I've encountered family members who have taken solicitors to relatives death beds in an attempt to persuade them to change their will. I won't go into details but I think it was possibly the most wicked thing I've ever seen.

BettiePage

Your children are YOUR responsibility. Not your brother-in-laws and not your parents-in-laws either.

miss_bargainmad

As I've said before my husband would never bring this up with his parents, it is just what we think and I wanted other people's opinions on it.

Getting on the housing ladder is nigh on impossible for most young people these days.

The average house price is nearly £200K - what sort of jobs must they have to afford this?

EliteHeat

miss_bargainmad wrote: »

Even £100K each wouldn't really get them that far where I live.

I think that that is one of the saddest things I have ever read. Why should your children not have to work for their homes? apart from the fact that they are yours, what makes them so special?

Seriously, if you really think that £100K each isn't enough of a headstart, then I don't believe you occupy the same planet as I do.

BettiePage

Getting on the property ladder is not the be all and end all of life. Surely health and happiness are more important.

Also, who's to say what will happen in the property market? Do you really think that things will carry on as they are?

Melissa177

Every parent wants the best start for their children, but you need to balance this with being too overprotective.

Every generation struggles to get onto the housing ladder. I talk to my grandparents, and they explain how they scrimped and saved in order to afford their very modest home. I talk to my parents, who had the same problem. I talk to my parent's friends, and they too did the eating-beans-on-toast-every-night-and-living-without-any-furniture-just-to-be-able-to-afford-their-own-home.

My parents (I am 24) took the view that they would do everything they could to get me the best education possible and get a good degree, but after that I'm on my own. I've just bought my first flat in London - sans parental help. It's tough, and I've been lucky in that I have a good job, but it's not impossible.

I would beware of molly-coddling your kids a bit too much by worrying about their ability to buy a home in the future, even though they are very young. If you want to instill a good work ethic in them, so that they understand that they have to work hard for life's rewards (ie, a nice house of their own), I would be wary of giving them the expectation that you will provide for them.

I also think it would be wrong to expect any inheritance - other people's money is theirs to do as they please with, not yours to expect.

That said, there are some practical things you could do. Do you receive tax credits/child benefit for your children? How about squirrelling that away into an account for them and saving it up? Tell them what you are doing, and encourage them to save too by giving them money for doing odd-jobs around the house, and getting them to add to the savings account.

A quick calculation shows that if you could put away 100 pounds each month for each of your two children, in ten years time, you'll have a pot worth about 33K. This would be a great sum to share between your two children for a deposit on a property.

Re: discussing IHT. My mother discussed it with her parents, who were very open to ideas. There are some simple measures that can minimise your exposure. Also beware about making presumptions about other people's financial situation - your brother for example may have debts that you're not aware off, and pensions are no longer guaranteed.

liney

I think you should show no interest what so ever in your Parents IL's estate. Your children should only benefit from the proportion they choose to leave you in their will, thats if they dont catch wind of your views on this and leave it to the local Cats Home.

Melissa177

miss_bargainmad wrote: »

The average house price is nearly £200K - what sort of jobs must they have to afford this?

But an FTB isn't buying an average property?

Stevenj214

miss_bargainmad wrote: »

As I've said before my husband would never bring this up with his parents, it is just what we think and I wanted other people's opinions on it.

Getting on the housing ladder is nigh on impossible for most young people these days.

The average house price is nearly £200K - what sort of jobs must they have to afford this?

Well at the average price of 185k, you need a couple earning £26k each with a 3.5x mortgage or £18.5k each with a 5x mortgage.

Yes that's still high, but it's not the aspirationally unobtainable figure you're making it out to be.

If I was in your father in laws position, I probably would make seperate provisions for each grandchild before splitting the rest 50/50 between your husband and his brother. However as others have said, that's his and his wife's decision to make. It's not something you should even be thinking about.

You're worrying about your kid's future when they have 'rich' grandparents and mortgage free (or almost, i forgot which) parents.

Now I know that everyones worries are relative to what they have, but at the moment i'm halfway through uni, I will graduate with £10k+ worth of debt, my parents and grandparents are not in a position to give me anything at all. Whilst it may take me a bit longer to get on the property ladder, I will eventually and I won't be any worse off for the potential struggle of getting there.

You talk about your father in law having no idea because you say he thinks everyone should have a spare 100k or 2 lying around, and yet you seem to have no idea either when you talk about them giving your kids 100k each as if it is nothing.

Melissa177

miss_bargainmad wrote: »

All I'm saying if I was in his position I would say fair enough I am actually quite rich, don't need the money, and it would be nice that two kids got a foot on the property ladder. Even £100K each wouldn't really get them that far where I live.

Where on earth do you live - Holland Park?!