Giving an Inheritance to Children and Grandchildren

silvercar

BikingBud said:

silvercar said:

madbadrob said:

Ginger_chap said:

madbadrob said:

One thing to consider and its something we have been discussing in another thread.  If your father left the money to yourselves and you then gave either as a gift or a DoV then should you for whatever reason need help from the DWP (no one knows if their job is secure for example) that by just handing this money over could lead to a claim that you have deliberately deprived yourself of money that could have been used etc.  I understand your reasoning behind what you are doing but for clarity in this instance I would have your fatehr set up trusts with their parents as trustees until they attained the age of 18 or yourselves made as trustees.  

The pitfalls that could occur in the future are such that I would probably seek some legal/financial guidance on this before your father was to pass so that this could all be dealt with in a way that his money goes to where he wants it to go.  

Rob

I'd be bit nervous about S&S investment, not that I know much but think a market correction is due. Online is fine until they reach 18 then I cant transfer from account to account as and when the rate plumets when they hit 18 (and it defaults to easy access rate). Unless I invest in my name but my ISA allowance is already used. I was talking about a childrens account in their name and not one in mine, if that makes sense.

Im not sure you have replied to the correct person because your reply is nothing like what I have said lol

Was probably a reply to me. Surely if you are controlling the accounts you continue to do so until you reveal the inheritance to your children? I mean what are your children going to do when they find out at 25 that they have a lump sum? Sue you?

Nowadays, who knows?

What if the sum left was £100K and if given access at say 18 they could have invested and turned that into 160-180 K, or set up a business, or bought a house and set themselves up with accommodation, then your actions might be considered to be prejudicial to their interests.

Further this doesn't tally with your later comment about opening the account in the child's name. How does that work and you maintain secrecy?

In my case it was a much smaller amount, so not at a house deposit or big investment level. I did open adult accounts online or postal in their name - they just didn’t know about it. 

Larger amounts would have caused bigger issues, as you say.