Minimum age to own a property?

Horlock

A simple but (I think) straight forward question.

Is there a minimum age for owning a property?

That is if a child inherits a large sum of money is there anything to stop their guardian purchasing a property in their name, which when they are old enough they are able to live in, and by which time it will have increased in value (irrespective of current market).

Please note: I am not referring to whether a child is entitled to a mortgage which I'm 99% convinced is a definate no no. I'm talking about a child with a large sum of money effectively investing it in a single property.

As a secondary issue - would there be anything to stop the property from being rented out - either with the child as the landlord or the guardian as the landlord - and the child the beneficiary of any rental income?

thelem

I'm pretty sure the answer is 18, but they can have a trust fund set up in their name before then and become the legal owner on their 18th birthday.

agrinnall

It probably can be done, but if the property in fact falls in value between now and the child's 18th birthday (which is quite possible despite your optimistic view) they might well be able to sue the guardian for failing to properly manage their money.

theartfullodger

Depends where: Scotland rules are different from Engerland... Where are you asking??

Also, if, for example, there is a 1-yr old, there are ways of arranging things...

Rentals TO minors is another area, fuzzy & unclear.. The issue usually is, if it all goes wrong, can the landlord evict a minor??? Can he recover debts???


Lemmeee guess: Tax fiddle???

xylophone

If a minor inherits under a will, the inheritance will need to be held in trust for that minor.

http://www.furleypage.co.uk/services-for-individuals/trusts-and-trustees/responsibilities-of-trustees/

Particularly if a large sum of money is involved, it seems to me that advice from a solicitor expert in wills and trusts as to what might be permitted is essential.http://www.step.org/system_pages/call_to_action_navigation/search_for_a_step_member.aspx?link=link

G_M

Horlock wrote: »

A simple but (I think) straight forward question.

Is there a minimum age for owning a property?
Define "own"! Property cannot be registered at Land Registry in name of a minor under 18.
But can be 'owned' by the minor and held in trust. The trustees would have decision-making powers (ie to buy, sell, let, maintain the property) but would have responsibility too (to act in the child's best interests)

That is if a child inherits a large sum of money is there anything to stop their guardian purchasing a property in their name, which when they are old enough they are able to live in, and by which time it will have increased in value (irrespective of current market).What do you mean 'irrespective of current market'? The value when they are 18 may be higher, or lower, depending on the current market now, and then!

Speak to a solicitor as you'd need a trust set up (if it dos not already exist under the will.

trailingspouse

A friend's son inherited the whole of his father's estate aged 11 - house, car, shares, savings, the lot. It was all put into trust, with his mother and my husband as trustee's. They basically had free rein with the money, so long as it was for the child's benefit (eg they could use the savings to pay for repairs to the house, because that was a reasonable expenditure to maintain the house). I think they also rented the house out, again, because it was a reasonable thing to do, and the increased income was added to the trust fund. His mum was also able to withdraw sums of money to help pay for his general upkeep, and also for 'specials' such as the school skiing trip and so on.
Decisions had to be made carefully (someone earlier mentioned being sued for failure to manage the money) - but if the action was reasonable at the time, you can't go too far wrong.

kingstreet

See Trustee Act 2000 for details of trustees powers and responsibilities.