Childrens investment/savings-any help?

misswig

Hi - any help appreciated please

Longish so i will try to make it brief.

Unfortunately my ex husband died earlier on this year leaving his will intestate (?). Because of this our 3 year old son inherits all of his estate (He didn't actually want this to happen!!). The estimate of hte estates worth is in the region of £100-120 000. I would like to put this money into a savings/investment account for when he is 18. no problem there.

However, i am now facing th next 15 years bringing my son up as a single mum with no financial support from his father or the family. Because of a bitter divorce, i have been doing this for the last year anyway, however, in order to make ends meet nd provide a roof over his head, i have to work full time and really watch the pennies:money: I would love to be able to cut down my hours at work a bit and spend more time with my son so i would really like to place the money into an account which allows interest to be paid monthly to me in lieu of maintenance leaving my son with the whole of the inheritance when he is 18.

Dilemma is i dont know how to do this, where to put his money etc

Any help would really be appreciated

dipsomaniac

with inflation, and regular interest withdrawals a cash account will lose half of its buying power in 15 years.

i am assuming that a trust has been set up for your son. providing the trust allows, you will need an asset backed investment (unit trusts/oeics) which will generate income as well as provide some capital growth.

misswig

dipsomaniac wrote: »

with inflation, and regular interest withdrawals a cash account will lose half of its buying power in 15 years.

i am assuming that a trust has been set up for your son. providing the trust allows, you will need an asset backed investment (unit trusts/oeics) which will generate income as well as provide some capital growth.

Thanks dipsomaniac. I will certainly look into that. As my ex husband did not sign a will, the whole of the estate falls to our son with me being the administrator of the estae. I have appointed my solicitor to be the co-administrator so there should be no problem with setting up an account for my son. I diid not take into account inflation etc so i will maybe have to have a rethink- i certainly dont want to decrease my sons inheritance in any way.

Vxx

debbie42

Whilst the funds need thought, regarding the investment, as it is a large sum, you have far more than just a savings issue here. You need funds to care for your son while he is growing. It's in both your interests. I don't see that anyone can expect you to do that on no maintenance and still have an invested, growing fund for your son when he is 18. Hopefully your solicitor can advise you on this?