Helping out children financially

Cacran

Mojisola wrote: »

Don't rely on this - people can change and they can also be in a position where they can't do the 'right' thing because of benefit claims, etc.

I have an older relative who has passed on differing amounts to his children - everything is documented and signed by both parties so that their eventual inheritances are reduced by their individual advances - everyone will end up with equal shares eventually.

We have the same agreement as your elderly relative. We would obviously update it should we give her more money.

Cacran

xylophone wrote: »

If you are "awash with cash" and can afford it, suppose you make a gift to your son of a sufficient amount to both equalise the amounts given to him and his sister and enable him to make a loan to his sister of the sum necessary to pay off the mortgage/boyfriend?

For example, suppose you originally gave him £50,000 to buy his home and originally gave £100,000 to his sister to buy hers.

She now requires another £100,000

You give him £150,000 - he lends his sister £100,000 and takes a first charge on her property.

The siblings see a solicitor to set up a formal and legally binding agreement covering the repayment of the loan.

Thank you for that, it has given me another avenue to consider. We are not exactly awash with cash, we have spent a lifetime of being careful, believe me. I really appreciate your suggestion though.

Cacran

AnotherJoe wrote: »

There is a "halfway house" method here which might help your husband. You loan your daughter the money (lets say its half the value of the house but it doesn't really matter what it is) to buy out the ex. The loan is open ended no repayment necessary until the house is sold. There is an agreement to that effect and also you take out a charge against the house. So you "sort of" own it but there's no big wodge of SDLT to pay. This is what I have done with my daughter.

Thank you for this suggestion. I really appreciate it. We will consider this and any other positive suggestions.

xylophone

It's okay as there was a Deed of Trust drawn up when they bought the house.

You did not mention this in your previous posts.

Presumably it specifies exactly what should happen in respect of sale/ending of relationship etc?

If this is the case, I don't understand why there have been conversations about his "walking away if he gets his deposit back".

You have previously given some figures.

You gifted your daughter £75,000, the partner put up £10,000 and they entered into a joint mortgage agreement - the term was fifteen years and there is a £2,900 early repayment fee.

The mortgage outstanding is now £60,000.

It appears from your previous that the partner has been solely responsible for paying the mortgage?

Is this from his sole account and if so, is your daughter sure that the payments are still being made?

Has she made up her mind that the relationship is over?


If so and you have made up your mind that you are going to assist, then you need to tell your daughter exactly what you are prepared to do.

If your son and daughter have (thus far) had more or less the same amount of money, you might now gift him the same amount of money as you are going to gift your daughter to repay the mortgage.

Or you might give her £30,000 and ask your son if he would be prepared to lend his sister his £30,000 against a charge on the property.

Your daughter and partner would then need to formalise matters with the mortgagee and the agreed payment to the partner would need to be made.

Presumably your daughter would then have only her own low wage (£6.600 per annum?) to keep her and her child and would be applying for means tested benefits as here?

https://forums.moneysavingexpert.com/discussion/comment/74883957#Comment_74883957

csgohan4

Cacran wrote: »

It's okay as there was a Deed of Trust drawn up when they bought the house.

It would have been nice if this was mentioned in your OP and you need to mention what is on it

Red-Squirrel_2

Cacran wrote: »

The reason we didn't want to buy her the whole house was because the house was so much more expensive, almost twice that of my sons.
The reason I am asking is should we own half her house is that my husband is so cross about it all he does not want to pay this money. Thought if it were in our name it would still be ours.

What exactly is he cross about? Hopefully not that the relationship has ended, surely he wouldn't want your granddaughter being brought up in an unhappy home? Upset I can understand but not cross.

xylophone

What exactly is he cross about?

He probably issued dire warnings that the relationship wouldn't last and is now being proved right.

He was persuaded to put up the gifted deposit for the joint mortgage against his better judgement and is now being called upon to fund the whole purchase.

Cacran

Red-Squirrel wrote: »

What exactly is he cross about? Hopefully not that the relationship has ended, surely he wouldn't want your granddaughter being brought up in an unhappy home? Upset I can understand but not cross.[/QU

I guess my husband being cross is because he is upset and thinks we are going to be left with much back up for our future as pensioners. Let us say, we disagree on this one! Believe me, there is no chance of repairing the relationship between my daughter and her now ex as he has done something unforgivable.

Cacran

csgohan4 wrote: »

It would have been nice if this was mentioned in your OP and you need to mention what is on it

I didn't mention it as I was so bogged down in the problem, I actually forgot. It's an age thing!

Cacran

xylophone wrote: »

He probably issued dire warnings that the relationship wouldn't last and is now being proved right.

He was persuaded to put up the gifted deposit for the joint mortgage against his better judgement and is now being called upon to fund the whole purchase.

She has been in a relationship with this person for six years. We thought things were right between them, other than we did not like his personality. He was fed up of travelling to and fro from his parents house, they thought getting a house would be a good idea.
She said that she would be expected to pay half of everything should they get a property together. We knew she could afford half the bills and everyday stuff but knew she would not be able to afford half of a mortgage.
We did not expect that he would do what he has done. I don't think She would appreciate me saying what he has done but trust me, no one would think it forgivable. I feel the need to get outsiders opinions, feels like I have someone anonymous to discuss it with.