leaving money

[islandgun]

i caught a part of a programme on tv last night about oldies (my age 60 +) the gist of which was will you leave money to your children or will you spend it, I have been thinking about this recently and have come to the conclusion that leaving it isnt a good thing. I know someone who was left money and he has never really made an effort in his life but has carefully spent the money over the years to live, Are you going to spend the money you made on travel and adventure or give to your sprogs ?

 

 

note to self (first make some money )

[numpty]

I like the idea of the 'Living Mortgage' but my son in law is not keen at all! Your only here once so spend it.

[guzzicat]

Dead right, get it spent, saves family members fighting over it.

[Les*1066]

What's money?

[brett1985]

I wont be leaving any cold hard cash, just the house. what my offspring (when I have some) decide to do with it will then be up to them.

[bruno22rf]

Father in law left us a sum of money-we paid off the mortgage and our various loans-invested in solar panels and gave the kids a grand each to spend on themselves (at our discretion) we could have blown the lot but we now live almost for nothing (compared to 5 years ago). We maxed out on premium bonds and spread the rest into several current accounts that pay 4% so the money is safe and working for us (albeit not very hard-better return on the PB's). When we snuff it everything goes to the 3 kids including several items (including guns) that will increase in value in the hope that they can buy houses for themselves. As for them maybe not appreciating the value of money because a chunk came to them free-when my eldest left school she had 5 part time jobs that have paid for her to get a degree-typical mind set of my sprogs. My other half and myself have known the sting of hunger and the threat of repossession and have had to resort to some underhand tactics to survive in previous years-the thought of my kids never feeling that type of fear is more important to me than any suntan or flash wheels.

[Bobba]

There's no pockets in shrouds!

[fenboy]

My daughters will get the house to sell and share the profits , they already know that we intend to spend all our cash .

[Twistedsanity]

Father in law left us a sum of money-we paid off the mortgage and our various loans-invested in solar panels and gave the kids a grand each to spend on themselves (at our discretion) we could have blown the lot but we now live almost for nothing (compared to 5 years ago). We maxed out on premium bonds and spread the rest into several current accounts that pay 4% so the money is safe and working for us (albeit not very hard-better return on the PB's). When we snuff it everything goes to the 3 kids including several items (including guns) that will increase in value in the hope that they can buy houses for themselves. As for them maybe not appreciating the value of money because a chunk came to them free-when my eldest left school she had 5 part time jobs that have paid for her to get a degree-typical mind set of my sprogs. My other half and myself have known the sting of hunger and the threat of repossession and have had to resort to some underhand tactics to survive in previous years-the thought of my kids never feeling that type of fear is more important to me than any suntan or flash wheels.

I'm with Bruno, life can be hard and it doesn't look like it's going to get any easier in future, I am eternally grateful for the financial help my mother in law has given us and will endeavour to do the same for my daughter when she is at an age that it will be appreciated., I have no intention of turning out a spoiled little brat or handing out cash on demand but if things carry on the way they are with this country the younger generation are going to need a little help to get on the housing ladder. I have already brought a car that I am confident will have enough value in 16 years time to cover her university fees as I struggled financially when I was younger and have no intention of putting my child through the same scenario if it's in my power to help her otherwise

[Kalahari]

There is one thing to think about if you intend to leave an estate, money or otherwise to your children. It doesn't take long for you to end up paying 40% inheritance tax to your friendly dhancellor of the exchequer. A bit of advice to reduce that hit might be useful.

 

David.

[Katzenjammer]

I have a solicitors appointment next week to see about the ramifications of signing my house over to my daughter. I want her to have some asset when I go that others cannot get their hands on. I also give her money as and when I can and fortunately she is of the same mindset as me regards saving etc but also to enjoying life now when the opportunity arises. I am fortunate enough to be comfortably off for my wants and needs. I know others are not but I worked honestly and hard for 36 years to achieve that. My daughter works hard as well but given the economic climate today may not have some of the maturing cushions later on - like so many youngsters?

I have had two or three small surprise legacies in the past that have come at times when I needed the money. Money can do so much good and cause so much joy.

ps do not die intestate, my ex wife's parents did and what a hassle over a piddling estate.

[Duckandswing]

My mum has already told my brothers and I that we are having the house and not a penny more. Since my father died she spends her time travelling the world, using her savings and the money she earns from her job.

 

Good call I say. My dad was her life prior to his death and she deserves to live however she wants to now he's gone.

[Mentalmac]

The issue now days is that a lot of people are economic ledging.... living month by month with nothing left to spare... this means that if your car breaks or you want to save up, there's nothing left at the end of the month to do this. This also makes it hard to save up a huge deposit needed for a hideously expensive house that is easier snapped up by an investor to let out at a high monthly cost...

A lot of people won't be able to buy a house until they can use the money handed down to them as a deposit for house of their own....

 

[djrwood]

 

There is one thing to think about if you intend to leave an estate, money or otherwise to your children. It doesn't take long for you to end up paying 40% inheritance tax to your friendly dhancellor of the exchequer. A bit of advice to reduce that hit might be useful.

 

David.

I thought this was only on estates worth over £750 soon to be raised if not already to £1m?

[rimfire4969]

Everything we have when my Wife and I go will go to our 3 children. But while we are still here we will spend it on what we want and not worry about it. When they have all left home (maybe 5 years) we will have more holidays and plan to spend all of Feb in Florida every year.

I thought this was only on estates worth over £750 soon to be raised if not already to £1m?

I thought it was more like £325000.

[AVB]

I'll be spending the cash and (probably) leaving the house (if I manage to buy again which is another moan). I got frustrated with my parents in their old age that the continued to scrimp and save to leave my brother and I a few grand. We continually nagged them to blow it and enjoy themselves but they just couldn't. The amount wasn't life changing for neither me nor my brother.

[nobbyathome]

my choice is quite simple I have 2 children they get whatever I leave between them equally I don't think I will have any money left when I snuff it because I don't have enough coming in but the house and possessions are gunna be between them i would not just spend everything i have just to have a good time i will be living my life normally as i always do until the end

[islandgun]

assuming the average value for a house is £250 k, I wonder if the knowledge of receiving this amount when your aged mother dies would result in a lack of incentive for the child, perhaps he might feel that he doesnt have to try that hard in work to buy their own house for example, or even that as the parent although we think we are doing the right thing this lack of incentive could result in making your child lazy or dependant on others, As one of the greatest things in life is to be proud of your achievements could our money actually be harmful how often have you heard the phrase I started with nothing !

 

Or as I once saw the phrase (might have been on here) I was born with nothing and Ive still got most of it

[ferguson_tom]

IMO if you own a house then that is the inheritance, money you have in your pocket should be spent enjoying yourself and helping the family as and when you can. That way you can see them enjoying the money you have worked hard for. I am very fortunate me and my wife have parents and grandparents who have this view and it has helped us out massively when we have really needed it like getting on the property ladder. My dads side of the family do not have this view and tight as a ducks ****..... I know which view i will be taking with my kids and grandkids in years to come.

 

Its worth remembering that to someone who is 20-25 looking at getting a house etc £15k would be a huge sum of money and help them out a lot more in life than getting to 50 years old and inheriting £100k.

[ferguson_tom]

assuming the average value for a house is £250 k, I wonder if the knowledge of receiving this amount when your aged mother dies would result in a lack of incentive for the child, perhaps he might feel that he doesnt have to try that hard in work to buy their own house for example, or even that as the parent although we think we are doing the right thing this lack of incentive could result in making your child lazy or dependant on others, As one of the greatest things in life is to be proud of your achievements could our money actually be harmful how often have you heard the phrase I started with nothing !

 

Or as I once saw the phrase (might have been on here) I was born with nothing and Ive still got most of it

 

By the time most parents die naturally at a ripe old the child....or 50 year old by time they die should have already sorted themselves out, if they are waiting for their parents to pop it before they buy a house etc then they will be living at home a long long time. Also anyone with an ounce of common sense knows that their is always the risk of old age care homes taking the most of it if needs must.

 

Also 250k buys sweet FA down here especially once split between a couple of siblings.

Edited August 27, 2015 by ferguson_tom

[rimfire4969]

 

By the time most parents die naturally at a ripe old the child....or 50 year old by time they die should have already sorted themselves out, if they are waiting for their parents to pop it before they buy a house etc then they will be living at home a long long time. Also anyone with an ounce of common sense knows that their is always the risk of old age care homes taking the most of it if needs must.

 

Also 250k buys sweet FA down here especially once split between a couple of siblings.

The care home thing is the one thing that bothers me. Maybe I should gift my kids my property before anything like that happens.

[hawkfanz]

I,m very luckyi only have one son who is a succesfull business mn with abig house so I spend on whatever takes my fancy no need to save anying for him,so he can give the proceeds of m house to my grandchildren.

[kyska]

There is one thing to think about if you intend to leave an estate, money or otherwise to your children. It doesn't take long for you to end up paying 40% inheritance tax to your friendly dhancellor of the exchequer. A bit of advice to reduce that hit might be useful.

 

David.

 

 

This is an issue for us, the children will inherit the farm, the land that we have tenants on and also numerous rental properties, we have to be very savvy about this,

[jam1e]

 

By the time most parents die naturally at a ripe old the child....or 50 year old by time they die should have already sorted themselves out, if they are waiting for their parents to pop it before they buy a house etc then they will be living at home a long long time. Also anyone with an ounce of common sense knows that their is always the risk of old age care homes taking the most of it if needs must.

 

Also 250k buys sweet FA down here especially once split between a couple of siblings.

 

I agree. I would presume a fair percentage of old folks die in nursing homes, so the greedy government gets all the value of the house anyhow....

My wife and I are going to seek some financial help at some point to see how long we have to get the house signed over to our children, before we get too old. And also, the implications on the children when doing this...

[OJW]

It's getting harder and harder to get on the housing ladder. For many peoples children, in my part of the world surrounding London, without their parents help they wouldn't be able to afford to live in the place they spent their lives growing up. Everyone is different but it's more likely to be their upbringing that has a bearing on how they spend inheritance or live their lives up until they get it and not the money itself.

 

That being said, I do know one guy who's parents bought him a flat outright, £350k no mortgage. He's more than content doing the job he's doing and not pushing himself and bases his life plan around being able to rent that flat out, live at work (works as a pub manager) and the fact he will inherent 1.5m from his parents when they die. I would suggest he is the exception.

 

If you sign your house over to your kids and survive 7 years then yea great inheritance tax mitigation, if in that time your kid gets married and divorced, you stand to watch half of everything you worked for go to a stranger. There will be other ways of doing it I'm sure.