Offest Mortgage kids savings accounts

blond77

Hi, Myself and my kids (under 10) stand to inherit a fairly large amount of money, most in the kids names and some in mine. I want to offset this againt the mortgage. I understand that if all the money is in my name, i will pay tax on this, whilst if i keep the kids money in their name they wont pay as much tax. My current bank (first direct) have not been overly helpful with advice and do not have childrens accounts. My question is, what would be my best options? Can you offset against childrens accounts? I would not want the money locked away as we may decide to spend the kids money on their education, therefore would need to access it.

Any help appreciated.

Thanks

getmore4less

If this is an inheritance and as the kids are under 18 it needs to be held in trust,

The administrators can hand over the trusteeship to parents, that is quite common.

Your ability to spend the money on anything depends on the terms of the trust and if this was not said in the will then they will be statutory trusts terms for minors and you need to follow those.

Get it wrong and your kids can sue you when they are 18.


As trustees you need to be carefull about using the money for your own interests. If subtantial then it may be sufficient that you should be taking financial advice.

Onto the offset I don't think there are any lenders that would have a offset structure that would allow this.

you could have the money in one of your own offset accounts being held on trust, but that does have the issues of you benfiting when you should not.

There is no tax on offset funds they don't earn any income they just reduce borrowing.

AnotherJoe

I want to offset this against the mortgage
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Do you charge them for board and lodging as well?

You would have a duty to invest this wisely and safely.
Using it to reduce your mortgage payments is unlikely to qualify.