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Buying House for Children with their inheritance money

Sam_Wd
Sam_Wd Posts: 1 Newbie
in House buying, renting & selling
My kids have inherited around 40k from their grandmother. They're both 9 years old.

Any idea if it is possible to invest this money in property for them?

And if so what the implications for mortgages/tax etc are?
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Comments

  • Cisco001
    Cisco001 Posts: 4,151 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    They can't paid the mortgage....
  • LittleVoice
    LittleVoice Posts: 8,974 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Sam_Wd wrote: »
    My kids have inherited around 40k from their grandmother. They're both 9 years old.

    Any idea if it is possible to invest this money in property for them?

    And if so what the implications for mortgages/tax etc are?



    Who's mortgage? Are you proposing to buy a property using their money as (part of) a deposit?


    Who's tax? Tax when the property is eventually sold? Tax on rental income? Stamp duty?
  • theartfullodger
    theartfullodger Posts: 15,713 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Under 18 in England or Wales you cannot own property. Speak with a solicitor about how to handle this.

    None of my business but I'd not tell them of their good fortune -other than "you'll get something eventually, not much..) until they are 25. It's what I did with my 3 kids.
  • googler
    googler Posts: 16,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    theartfullodger wrote: »
    None of my business but I'd not tell them of their good fortune -other than "you'll get something eventually, not much..) until they are 25. It's what I did with my 3 kids.

    Assuming you weren't the executor, shouldn't they (assuming E&W) have been given their inheritance by the executor at 18?
  • xylophone
    xylophone Posts: 45,639 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If the money has been left to the children without contingency then they have the right to access and control at age 18.

    You can consult your solicitor but it would seem to me that you are simply a bare trustee of this cash and cannot simply choose to use it to buy a property.

    Does each child have a CTF? If so, you could deposit £4080 into each and then transfer into JISA and immediately add another £4080 in each in this tax year.

    The balance could be held in bare trust in other child accounts and gradually transferred into the JISA.
  • Running_Horse
    Running_Horse Posts: 11,809 Forumite
    Part of the Furniture Combo Breaker
    Leave your kids money alone. Put it somewhere safe and boring so they can decide what to do for themselves when they are old enough. Maybe they won't want a house but will want expensive career training. Maybe they will want to travel, or go to university. Why the modern obsession with property?
    Been away for a while.
  • fishpond
    fishpond Posts: 1,022 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Stock market?
    I am a LandLord,(under review) so there!:p
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Sam_Wd wrote: »
    My kids have inherited around 40k from their grandmother. They're both 9 years old.

    Any idea if it is possible to invest this money in property for them?

    Indirectly through various funds and similar which invest in property, usually commercial.

    Whether that would be regarded as wise by anyone investigating how you are looking after their money (which might be them when aged X* if its all gone mammary glands upwards) is a different matter.

    * where X is the age specified by grandmother in will
  • theartfullodger
    theartfullodger Posts: 15,713 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    googler wrote: »
    Assuming you weren't the executor, shouldn't they (assuming E&W) have been given their inheritance by the executor at 18?
    If it had been as simple as that, of course: It wasn't, and of course it was legal..
  • ScorpiondeRooftrouser
    ScorpiondeRooftrouser Posts: 2,851 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Put it all on red
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