Money Moral Dilemma: Is it OK to pay off our mortgage with our son's winnings?

MSE_Sarah

This week's MoneySaver who wants advice asks...

We've just had our first child and his grandparent has given him £1,000 in Premium Bonds. It's unlikely, but if he actually won big, would it be wrong if we paid off our mortgage with the money? He'll inherit our house one day after all.

Unfortunately the MSE team can't always answer money moral dilemma questions as contributions are often emailed in or suggested in person. They are intended to be enjoyed as a point of debate and discussed at face value.

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marliepanda

I cannot believe this even needs to be asked. of course it is wrong

1. It is his money, not yours.
2. Inheritance is irrelevant, you could fall out with him later in life, or you may need to sell your home to pay for your care when you are older/incapacitated.

Red-Squirrel_2

He won't win, so don't worry about it!

phryne

I'm often tempted to get premium bonds. But to answer your question, you shouldn't touch your son's money unless you were in dire straits, and even then it should be paid back to him asap.

NaughtiusMaximus

marliepanda wrote: »

I cannot believe this even needs to be asked. of course it is wrong

1. It is his money, not yours.
2. Inheritance is irrelevant, you could fall out with him later in life, or you may need to sell your home to pay for your care when you are older/incapacitated.

Sunny_Intervals wrote: »

Is this a moral dilemma? Surely "is it okay to steal from my child?" is more of a legal dilemma...at least it will be when he finds out and comes after his money.

Quite. I've seen a few ridiculous 'dilemmas' on this forum but this one takes the cake.

Pollycat

MSE_Sarah wrote: »

We've just had our first child and his grandparent has given him £1,000 in Premium Bonds. It's unlikely, but if he actually won big, would it be wrong if we paid off our mortgage with the money? He'll inherit our house one day after all.

What absolute nonsense!
Even if anyone was so dim as to ask this question, it's not a dilemma until/if the premium bonds actually win.

dawyldthing

Arr I might invest for the little one when here. If they win something it can go towards their own lives, uni, a house etc

Pollycat

There's nothing like counting your chickens before...:rotfl:

TBagpuss

It would be fraud. So no, not OK,

gloriouslyhappy

Why not ask the grandparents what they think of your idea? If they're not totally gobsmacked, they just might give you some Premium Bonds too!

dysucker

The only way I could think this may be remotely OK is if you did that, placed a charge registered against the property with the land registry, with a watertight loan agreement with an index linked interest rate that is at least what you're currently paying in interest, with the grandparents as witnesses.

This may offset your child's inheritance tax should he win, and you do this.

Without a way of making the main beneficiary of this situation your child, then this is just theft.