married prince charming now need to sort out trust money for his kids....
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cinderella31
Posts: 8 Forumite
Oh boy, this will be along one! Welcome advice please!
Have just got married to Prince Charming, who has 3 kids and whose wife died from breast cancer three years ago (I have one child..) Currently his children's money is held as 50% of the value of his house = £200/2 = 100k for the kids(the kids are tenants in Common with him). Prince Charming and his sister in law (late wife's sister who's v nice, has interest of kids at heart but seems to think we don't have kids interest at heart / likes to meddle / ask millions of questions...grrr!) are both trustees.
We are in process of selling Prince Charming's house and need to build an extension at my house to fit everyone in (all now living with me). Extension quoted as being £75k. We need to use at least some of the children's money towards paying for the extension (so they would become tenants in common in my house for x%). But sister in law wants all (or as much as possible) in trust for kids so they can access money when they are 18 rather than on mine and Prince Charming's death if all money in the house).
Anticipate Prince Charmings proceeds of the sale to be about £40k once paid off mortgage / loans / credit cards /solicitors fees etc
To make things more complicated, I recently got divorced and had to pay ex husband £70k so I could keep the house. My mortgage is now £130k (yikes) so borrowing more to cover the extension isn't really an option, and whilst would like lower monthly outgoings not entirely sure am comfortable with the 3 kids owning a larger than necessary % of the house - BUT - would this be good financial planning in terms of inheritance / means testing when I'm old and grey in need of a nursing home??!
Also, we want to be able to provide for my daughter too so it's not unfair that Prince Charming's kids get £xk on their 18th b'day / invested in the house - she would really need to get the same as well. But we still have to bring the kids up too and the finances for that!
What do you reckon?
If some or all of the kids money was in trust where is a good place to put that money (frankly I'm not comfortable with the kids having unrestricted access to that amount of cash aged 18 and would prefer it be authorised by the trustees till they were older, but not sure of terms of will)
Is investing in property any good (buying flat and renting - but who gets the income from that?)
What is the best option for us all?
What should we do about giving my daughter the same headstart? (ask grandparents to save?)
How can we ensure we have enough money to adequately bring up the kids till they are 18 (when they could then be rich enough to look after us for a bit!!!)
Anyone else been in the same position?
Thanks very much!
Cinderella (the hard work never stops!)
Have just got married to Prince Charming, who has 3 kids and whose wife died from breast cancer three years ago (I have one child..) Currently his children's money is held as 50% of the value of his house = £200/2 = 100k for the kids(the kids are tenants in Common with him). Prince Charming and his sister in law (late wife's sister who's v nice, has interest of kids at heart but seems to think we don't have kids interest at heart / likes to meddle / ask millions of questions...grrr!) are both trustees.
We are in process of selling Prince Charming's house and need to build an extension at my house to fit everyone in (all now living with me). Extension quoted as being £75k. We need to use at least some of the children's money towards paying for the extension (so they would become tenants in common in my house for x%). But sister in law wants all (or as much as possible) in trust for kids so they can access money when they are 18 rather than on mine and Prince Charming's death if all money in the house).
Anticipate Prince Charmings proceeds of the sale to be about £40k once paid off mortgage / loans / credit cards /solicitors fees etc
To make things more complicated, I recently got divorced and had to pay ex husband £70k so I could keep the house. My mortgage is now £130k (yikes) so borrowing more to cover the extension isn't really an option, and whilst would like lower monthly outgoings not entirely sure am comfortable with the 3 kids owning a larger than necessary % of the house - BUT - would this be good financial planning in terms of inheritance / means testing when I'm old and grey in need of a nursing home??!
Also, we want to be able to provide for my daughter too so it's not unfair that Prince Charming's kids get £xk on their 18th b'day / invested in the house - she would really need to get the same as well. But we still have to bring the kids up too and the finances for that!
What do you reckon?
If some or all of the kids money was in trust where is a good place to put that money (frankly I'm not comfortable with the kids having unrestricted access to that amount of cash aged 18 and would prefer it be authorised by the trustees till they were older, but not sure of terms of will)
Is investing in property any good (buying flat and renting - but who gets the income from that?)
What is the best option for us all?
What should we do about giving my daughter the same headstart? (ask grandparents to save?)
How can we ensure we have enough money to adequately bring up the kids till they are 18 (when they could then be rich enough to look after us for a bit!!!)
Anyone else been in the same position?
Thanks very much!
Cinderella (the hard work never stops!)
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Comments
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What was the original purpose of making Prince Charming's children tenants-in-common with Prince Charming (presumably on occasion of the unfortunate death of Prince Charming's first wife)? Is that all they were left?
My first thought was that it seems an unusual arrangement unless Prince Charming has significant assets of his own?0 -
Prince Charming sadly doesn't have assets of his own. His wife had had inheritance problems when her mum died and the step father had all the money and she wanted to protect the interests of her children into the future - which is fair enough - but makes it complicated now!0
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Ah! I thought there must be something unusual/particular behind this situation.
The trouble is, then, that the trust deeds are likely to lend force to your sister-in-law's concerns.
Sorry
. I'm not saying you don't have the children's best interests at heart, but in this age of £30K+ student debts I can see her point of view. A responsible trustee would want to release the necessay cash for the children if it was possible.
How old are the children?
The equation requires a balance between their home needs and their future needs aspotentially indebted students.
King Solomon, where are you when we need you
? 0 -
Yes, it would be good for them not to amass student debt (though I managed that by working part-time in a decent job and still got a 1st! so I'd like them to learn the work ethic too! but obviously not submit them to 3 years of beans on toast for tea!)
But then where to invest their money, and how to pull a rabbit out of a hat so my daughter is treated equally too?
Prince Charming's children are 9, 6 and 5 and my daughter is 6.....0 -
That's not part of the trust deed your s-i-l is responsible for.cinderella31 wrote:how to pull a rabbit out of a hat so my daughter is treated equally too?
Hopefully, with your first - congratulations
- , you can earn enough to provide for your own?
That does skew the equation back in your favour since their immediate needs [not just their student debts and first time buyer deposits ] should also be met.Prince Charming's children are 9, 6 and 5 and my daughter is 6.....
But don't let your own experience create any unncecessary resentments / pre-conditions.
The recent hike in student fees by £6,600 - from 2006/7 - has created a new playing field that you should also take into account.cinderella31 wrote:Yes, it would be good for them not to amass student debt (though I managed that by working part-time in a decent job.0 -
God i am in a negative mood today, i must be but how can you or your daughter NOT miss out? Your other half has assets, his children have assets, you have a mortgage. Does this mean that eventually when you die your daughter will inherit your house?
I thought my situation was complicated!0 -
Yes.
The eventual inheritance on the house in question looks like cinderella's daughter 1/2 and Prince Charming's children 1/6.
That may be why s-i-l is "interfering"?
21st Century families. A total minefield.0 -
The Trustees by law have to protect the interests of the beneficiaries - if your sister in law did not protect the value of the trust then your hubby's kids could sue her!
If my understanding is correct, on the death of PC's first wife, the debt (mortgage) passed entirely to PC, and half of the value of the house passed to the trust. This seems a badly written trust - the will has left £100k to the kids, and a £60k net debt PC! Is my understanding correct?I'm an Investment Manager. Any comments I make on this board should be not be construed as advice, and are for general information purposes only.0
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