Parent and child inheritance

patchwork_cat

There is a thread on probate board about child inheritance. The OP is considering relinquishing trustee status to the parent. Some are saying no as a parent could misappropriate the funds. I maintain that would be a rare parent. What do others parents think would it be an unusual parent that would not safeguard a child's inheritance?

BitterAndTwisted

Unfortunately, some parents or other family members cannot be trusted to safeguard a child's inheritance. There have been rumours in my own family but I think it best not to stir up that particular hornet's nest at it's not my money....

Georgiegirl256

patchwork_cat wrote: »

What do others parents think would it be an unusual parent that would not safeguard a child's inheritance?

It would be an unusual parent yes, but I could see it happening a lot more than people think it might.

Not everyone is so trustworthy....:(

RAS

Given some of the antics we have seen on here and particularly on the debt forum over the years, there are a number of parents who abuse their responsibility.

Multiple mothers have taken out loans and provident loans in the names of children; the father who used his son's details to take out a loan. Usually the first thing the child knows about it is when the debt collectors contact them about statute barred debt.

The parents who used the childrens' inheritance for a deposit on the house. Which they sold and upgraded.

The children got back precisely one third each of the value of the original inheritance; they would have received more if the money was put in a fairly poor building society account.

OK, they had a roof over their heads for their childhood but as children were entitled to expect that fromt heir parents.

Gigervamp

Supposing the parents are trustees and one day the boiler breaks and needs replacing. The parents don't have savings to pay for it. It could be tempting to "borrow" some of the money to get a new boiler. After all, the child will benefit from having heating in the house.

Just one scenario to consider.

quidsy

Some parents would not think they were "misapproriating" if the money was spent on the "family unit" but as the money was left specifically to the child it is, they just don't see it that way. Have had that issue in our family & very unpleasant.

DigForVictory

There are unsual parents & then there are parents who do odd things under odd circumstances.

99% of the time, trusts are there to protect the child's inheritance from all comers up to & including their own families.

To square the circle there's the equally shocking rise of "elder abuse" - of the financial sort, where the parent trusts the child to look after their interests & is left without money, care, or contact with child.

Wherever there's money, there needs to be safeguards. Sad world.

rpc

DigForVictory wrote: »

To square the circle there's the equally shocking rise of "elder abuse"

As shocking as that is, it involves two (or more) adults. The parent has chosen to trust the child, although it is often more complex in practice.

That is a different scenario to a child who has no choice but to have their assets held on trust. Any decision the child made would have no weight.

Spirit_2

I know of someone who left a sum to each of their two grand children. Their son was the father of the children.


Following a later divorce, remarriage and further children with a new partner the mum reapportioned the inheritance as she did not think it fair that her younger children would have a different start in life when they reached adulthood.

Parents will have all sorts of perspectives, whilst an independent trustee is just that...independent.

onlyroz

If I died and my children went to live with (e.g.) my brother I wouldn't object to him spending some of "their" inheritance on buying a larger house for them all to live in. Is this an abnormal view point then?

quidsy

No it all sounds perfectly logical in one way but what if, when your kids were grown but unable to afford their own property or to go into higher education due to this money being used. Your brother would be in possesion of a property much larger than he would have naturally had had your kids not contributed, but who is to say he would sell it & fairly share out the profit? Then lets say he dies & his own children inherit said property.