Setting up for a child's future ... and some wobbly bits in between

Years ago Gt Aunt Margaret died and left money in trust to my 2 children.  I am trustee.  Less years ago we borrowed £30K from the fund to renovate a house in which the children were to live, this was permitted under the terms of the will/trust providing a second charge was placed against the property.  1 year ago I paid off the mortgage on the same property and am now mortgage free with the second charge lodged with the land registry.  Eldest daughter is about to go off to Uni and essentially I owe her £15k into her trust fund the majority of which is still managed by fund managers Investec.  I want to put this £15K somewhere safe so it doesn't get blown on shoes and booze.  
I have 2 questions:
  1. a)   Regardless of where I place this money how do I notify the Land Registry?  b)   Would it be better to pay the full £30K back and set something up for both children at the same time?
  2. Ideally I would like this money to go towards a deposit on a property, either while at Uni or following graduation.  So, with the changes to LISAs recently what are my options and, what is the opinion of this as an option for investing, alternatively it could go towards the beginnings of a pension fund (which seems crazy to think about at 18 and my daughter is less than warm to this idea but it seems a sensible option to me)?

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  • Albermarle
    Albermarle Posts: 20,994
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    so it doesn't get blown on shoes and booze.  

    You are only young once ...........

    More seriously , probably best not to overprotect her too much . The sooner she realises  that once money  is spent it is gone , the better  she may manage money matters in future once the lesson is learnt . Although maybe £15K is too much for a uni student to have spare .

  • so it doesn't get blown on shoes and booze.  

    You are only young once ...........

    More seriously , probably best not to overprotect her too much . The sooner she realises  that once money  is spent it is gone , the better  she may manage money matters in future once the lesson is learnt . Although maybe £15K is too much for a uni student to have spare .

     ;) Agreed, and we have discussed this.  But she's a terrible worrier (not a bad thing) and she doesn't want the stress of a full £15K to manage.  I'm lucky and can afford to either give her some KKs to 'look after' or take a portion of this £15K and give it to her, but the outstanding question remains, how to get this of the deeds.
  • eskbanker
    eskbanker Posts: 29,765
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    Can't help on the subject of the property deeds but do the terms of the trust actually allow you to retain any control over the children's access to the money beyond 18?
  • kuratowski
    kuratowski Posts: 1,404
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    This is the ISA section, so your question #1 might not be seen by the resident experts on these matters.  A few posters are ubiquitous, but others look at only a few boards of most interest to them.

    There is a land registry rep who answers questions on the housing board here: https://forums.moneysavingexpert.com/discussion/5685941/land-registry-questions

    And there is a separate board dealing with wills, and trusts here: https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

    Regarding question #2 Lifetime ISA is the obvious if saving towards a property, and maybe the rest could go in a fixed term savings account if not needed until after university.   I can quite understand the hesitancy towards starting a pension at age 18 - she would be unable to access the money until age 57, and quite possibly that age could be increased by future governments.
  • Albermarle
    Albermarle Posts: 20,994
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    Yes pension can come later when she has a job, and the employer pays in as well .
  • Keep_pedalling
    Keep_pedalling Posts: 16,118
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    In your other thread you say your children are grown up, so it sounds like the trust should be wound up and the proceeds distributed.

    The money was left to them and you have no right to dictate how they spend it.
  • In your other thread you say your children are grown up, so it sounds like the trust should be wound up and the proceeds distributed.

    The money was left to them and you have no right to dictate how they spend it.
    Thanks, I’ve also posted on wills/probate etc, but the advice I’m looking for specifically here concerns the best first time buyer isa as these are topped up by the government x20%. 

    As to your quoted statement.  
    Actually I do, I’m the trustee and according to the terms of the will/probate they’re not ‘entitled’ to it until 32, for some reason, as trustee I can reduce this and will but, 16 and 18 is a bit too soon.  But thanks.
  • grumiofoundation
    grumiofoundation Posts: 3,050
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    edited 12 May 2021 at 1:13PM
    In your other thread you say your children are grown up, so it sounds like the trust should be wound up and the proceeds distributed.

    The money was left to them and you have no right to dictate how they spend it.
    Thanks, I’ve also posted on wills/probate etc, but the advice I’m looking for specifically here concerns the best first time buyer isa as these are topped up by the government x20%. 

    As to your quoted statement.  
    Actually I do, I’m the trustee and according to the terms of the will/probate they’re not ‘entitled’ to it until 32, for some reason, as trustee I can reduce this and will but, 16 and 18 is a bit too soon.  But thanks.
    It’s called a lifetime ISA.
    Bonus is 25%.

    For use towards a house deposit a cash lifetime ISA would generally be recommended as less risky.
  • kuratowski
    kuratowski Posts: 1,404
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    Having now seen the other thread.  As well as the reasons already stated there against putting your house in the children's names, that would also make both of them ineligible to use Lifetime ISAs for a property purchase.
  • xylophone
    xylophone Posts: 43,802
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    Actually I do, I’m the trustee and according to the terms of the will/probate they’re not ‘entitled’ to it until 32, 

    If the bequest "indefeasibly vested" in your minor children from the date of the testator's demise, then the Trust is a "bare trust" and as  beneficiaries of a bare trust, the beneficiaries would have  the absolute right to call for access and control at the age of 18 (16 in Scotland).


    https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

    https://www.gov.uk/trusts-taxes/types-of-trust

    What type of Trust was this? What was the  tax treatment of any income arising on deposited/ invested funds?

      As a parent and home owner,  (ie in your personal and private capacity) you  took a loan from the money in the Trust account  to pay for improvements to the property in which you and the children lived. The will/Trust Deed permitted the making of such a loan.

     As Trustee of the Trust, you then caused  a second charge  to be registered at the Land Registry in favour of the Trust.

    What were the terms of the loan? Was interest  due? When (and under what circumstances) was the loan to be   repaid?

    If you are now in a position to repay the loan,  as a private individual you will make a payment to the Trust account and as Trustee you will arrange for the charge on the mortgage to be removed?


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