Helping out nephews and nieces for their futures – what would you do?

Albermarle

I'd rather it was spent on something substantial and with investment potential than blowing on a backpacking holiday, or worse! I

I would have said if they spent it on a backpacking holiday ( maybe with a few nights in hotels with the £3K) this would be a positive result. See the world, good experience etc. Better than spending it on drink and drugs.

In my limited experience, people of this age do not think at all about things like investment potential !

bostonerimus

Albermarle said:

I'd rather it was spent on something substantial and with investment potential than blowing on a backpacking holiday, or worse! I

I would have said if they spent it on a backpacking holiday ( maybe with a few nights in hotels with the £3K) this would be a positive result. See the world, good experience etc. Better than spending it on drink and drugs.

In my limited experience, people of this age do not think at all about things like investment potential !

One of my grandnieces is 11 and she chose to use some of her annual gift to go on a couple of trips: 1) Fort William to ride the "Harry Potter" train to Mallaig; 2) On tickets and an overnight trip to see the RSC's My Neighbour Totoro at The Barbican. Her mum put what was left aside for a rainy day/college. My grandnephews are into mountain biking so they bought fancy wheelsets. Both are great uses of the money IMO, but although I try not to judge how it's spent I think I would stop the gifts it they were older and used the money on obviously self destructive activities.

HorseWhisperer

warby68 said:

For £3k max, I think I'd give as 18th or 21st birthday presents unless I knew them to be completely daft, and save/invest in my own name until then.

Yeah, but it adds to my estate which currently is already well into IHT territory AND I'll also have to pay tax on the savings interest, which my nephews and nieces won't. I'm trying to get money out of my estate and into the pockets of those that need it more than I do! I was just trying to see if there were alternative options to investing it myself.

HorseWhisperer

HorseWhisperer said:

Thank you all for your input. Some food for thought here, but still a bit stumped on what to do for the younger ones.

wmb194 said:

Well, it sounds like there's no option. You clearly don't trust them to make their own decisions so just hold on to it and give it to them at 25.

I wouldn't have trusted myself at 18!

HorseWhisperer

Albermarle said:

I'd rather it was spent on something substantial and with investment potential than blowing on a backpacking holiday, or worse! I

I would have said if they spent it on a backpacking holiday ( maybe with a few nights in hotels with the £3K) this would be a positive result. See the world, good experience etc. Better than spending it on drink and drugs.

In my limited experience, people of this age do not think at all about things like investment potential !

Unless the backpacking experience also involved drink and drugs. Which many do.

HorseWhisperer

bostonerimus said:

Albermarle said:

I'd rather it was spent on something substantial and with investment potential than blowing on a backpacking holiday, or worse! I

I would have said if they spent it on a backpacking holiday ( maybe with a few nights in hotels with the £3K) this would be a positive result. See the world, good experience etc. Better than spending it on drink and drugs.

In my limited experience, people of this age do not think at all about things like investment potential !

One of my grandnieces is 11 and she chose to use some of her annual gift to go on a couple of trips: 1) Fort William to ride the "Harry Potter" train to Mallaig; 2) On tickets and an overnight trip to see the RSC's My Neighbour Totoro at The Barbican. Her mum put what was left aside for a rainy day/college. My grandnephews are into mountain biking so they bought fancy wheelsets. Both are great uses of the money IMO, but although I try not to judge how it's spent I think I would stop the gifts it they were older and used the money on obviously self destructive activities.

These are kids who don't want for much already. Their parents are much more wealthy than I am and the parents received the same legacy from our mother, so they can provide the luxury gifts/experiences if they want to. In fact, one of the sets of parents took the kids off for a 3 week trip to Thailand this Christmas with their legacy. I'm much more of a feet on the ground kind of a person who is always looking to provide for my own future, so that's why my thinking is much more in the direction of investment potential than just blowing it (although that trip your grandniece did sounds amazing!). I realise that I do sound a bit bah humbug, but you never know when the s**t is going to hit the fan - and that £3k (plus the interest) could be something much needed in 10 or 15 years time.

ashby6567

My mum wanted at least some of her money which I’ve inherited to stay within her line of the family if unspent in my lifetime


These are kids who don't want for much already. Their parents are much more wealthy than I am


Personally I'd spend the money without a second thought.

Sea_Shell

HorseWhisperer said:

Yeah, but it adds to my estate which currently is already well into IHT territory AND I'll also have to pay tax on the savings interest, which my nephews and nieces won't. I'm trying to get money out of my estate and into the pockets of those that need it more than I do! I was just trying to see if there were alternative options to investing it myself.

HorseWhisperer said:

These are kids who don't want for much already. Their parents are much more wealthy than I am and the parents received the same legacy from our mother, so they can provide the luxury gifts/experiences if they want to. In fact, one of the sets of parents took the kids off for a 3 week trip to Thailand this Christmas with their legacy. I'm much more of a feet on the ground kind of a person who is always looking to provide for my own future, so that's why my thinking is much more in the direction of investment potential than just blowing it (although that trip your grandniece did sounds amazing!). I realise that I do sound a bit bah humbug, but you never know when the s**t is going to hit the fan - and that £3k (plus the interest) could be something much needed in 10 or 15 years time.

If their family are already that well off and the money is burning a hole in your pocket, there is always giving to charity instead.

Do your research and choose one that you feel are "worthy", maybe a local one.    Unless of course, you already do, and this money would be over and above that.

You never know what the future holds, and if these kids all end up with gifts and inheritances coming in from all directions, they could themselves end up leaving a massive IHT bill, especially if future governments reduce the allowances (or freeze them).

ashby6567

Hindsight, The topic headline

Helping out nephews and nieces for their futures – what would you do?

Not exactly befitting is it?