inherited a house, to sell or rent?

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  • TheTracker
    TheTracker Posts: 1,223 Forumite
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    Leaving aside the legalities of inheritance, or sentimentality of the situation, to answer the generic question of "I've been given X with a market value of £Y, should I sell it or keep it?" one must consider the question "I've been given £Y, should I buy X?". You are suffering from psychological biases of having a bird in the hand.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    Amanda1970five wrote: »
    I and my kids have inherited a property worth around £170,000.00 (60%me, 20% eldest child 10% each for youngest two) the kids get there shares at 25y. (one is 21, the other two are 11y and 12y)

    If you keep the property as a rental, what are you going to do in four years time when the eldest child wants their inheritance?
  • Amanda1970five
    Amanda1970five Posts: 8 Forumite
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    Update and advice welcomed.

    I sold the house !
    My younger kids are are 14 and 12, inherited just short of 19k and entitled to it at age 25y.

    imy older child is 23 in sept, entitled to hers at 25y and has just short of 28k. She wants to use this for a house deposit.

    I have around 100k. A mortgage of 60k outstanding currently.

    My money is just in a deposit account at hsbc who I bank with. The children’s Cheques I couldn’t bank as they say trustee in the payee section - anyone know where I can bank these Cheques that are in my children’s name with me named as trustee?

    I don’t know whether I should pay my mortgage off - will this affect my tax credits ? And I don’t know about how to invest a possible 30k. I have no pension scheme.
    In my divorce settlement - I got the house and he got his pension.

    Any advise is welcomed .

    Thank you. A x
  • Amanda1970five
    Amanda1970five Posts: 8 Forumite
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    Sorry - my mistake

    The Cheques say

    My name Trustee for child!!!8217;s name

    Any ideas who will bank these as hsbc won!!!8217;t.

    Thank you
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 15 August 2018 at 10:29AM
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    Amanda1970five wrote: »
    Sorry - my mistake
    The Cheques say
    My name Trustee for child's name
    Any ideas who will bank these as hsbc won't.
    Thank you

    I dont know but i suggst you post this as a separate question in the banking forum (Or maybe deaths and probate?) as its somewhat lost here where the first 20 posts are about letting out a house and the subject line is nothing to do with your new question.

    Also if on your iPad you go to settings > general > keyboard and toggle off "smart punctuation" you'll stop getting all those annoying !!!!827 bits of text and make your posts more readable .

    Its a MSE bug they arent bothered fixing so this is a workaround.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    It's worth looking to see whether ns&i would be useful.

    https://www.nsandi-adviser.com/trusts
    Free the dunston one next time too.
  • xylophone
    xylophone Posts: 44,483 Forumite
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    Did you establish with the solicitor whether the bequest indefeasibly vested in your children? If so, you are the Trustee of a "bare trust".

    http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf

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

    If so, each child has an absolute right to call for access and control at age 18, regardless of the direction in the will.

    The money belongs to the beneficiary and any interest arising
    is always taxable on the beneficiary.

    Bath BS has this

    https://www.bathbuildingsociety.co.uk/savings/business-and-professional-accounts/trust-information/trust-account-a-complete-guide

    And Skipton BS will open Trust accounts.

    http://trustsdiscussionforum.co.uk/t/bank-account-for-a-trust/3865/6

    Has your adult daughter opened a LISA?

    https://www.skipton.co.uk/savings/isas/cash-lifetime-isa
  • Keep_pedalling
    Keep_pedalling Posts: 16,662 Forumite
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    Amanda1970five wrote: »
    Update and advice welcomed.

    I sold the house !
    My younger kids are are 14 and 12, inherited just short of 19k and entitled to it at age 25y.

    imy older child is 23 in sept, entitled to hers at 25y and has just short of 28k. She wants to use this for a house deposit.

    I have around 100k. A mortgage of 60k outstanding currently.

    My money is just in a deposit account at hsbc who I bank with. The children’s Cheques I couldn’t bank as they say trustee in the payee section - anyone know where I can bank these Cheques that are in my children’s name with me named as trustee?

    I don’t know whether I should pay my mortgage off - will this affect my tax credits ? And I don’t know about how to invest a possible 30k. I have no pension scheme.
    In my divorce settlement - I got the house and he got his pension.

    Any advise is welcomed .

    Thank you. A x

    Although the will may have said 25, you children are entitled to their inheritance at 18 (16 in Scotland) it would make sense for you oldest child to to receive hers asap so she can take advantage of a lifetime ISA to boost her deposit.

    Banks are extreamly reluctant tpo provide trustee accounts, and those that do exist pay little to no interest so not a great place to deposit it. For the younger children I would be looking to get as much as possible into JISAs.
  • xylophone
    xylophone Posts: 44,483 Forumite
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    If you open a bare trust account for each of the younger ones, it should be possible to transfer the maximum each tax year from those accounts to a JISA for each child.

    Presumably each of the younger children has a CTF - it would be possible to transfer the maximum to the CTF in the CTF year, transfer CTF to JISA and then make the maximum subscription to the JISA.

    https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html
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