Need to "lose" £25K
Discussion
S10GTA said:
condor said:
That sum could be used to pay his Uni tuition fees, which is probably the best way to spend it.
Don't do this.
I would have thought that his Grandparents would be pleased to know that the money they've set aside for him is to go to fund his University degree.
Some of the comments on here are strange. I inherited some money, relatively small compared to some of the figures floating around here but I was very grateful for it as it got me foot on the ladder in the pre 2008 days. I was the epitome of the problems with the system at the time but I never missed a payments etc.
Anyway, my parents said the money was for a deposit on a house and that was it. There is no way I would have got away, legally or not, with spending it on anything other than what my grandparents intended it for. I find it rather disrespectful to go against their wishes in that way.
Anyway, my parents said the money was for a deposit on a house and that was it. There is no way I would have got away, legally or not, with spending it on anything other than what my grandparents intended it for. I find it rather disrespectful to go against their wishes in that way.
DonkeyApple said:
Logically, that amount of money is going to be most beneficial once he has graduated, settled into a career and location and is needing to get into the property ladder. Trying to get it into a trust to swerve PETs (if relevant) until about 25 might be the best route.
However, in reality, there is no perfect way to plan a gift such as this and whatever you do could backfire or certainly not go as planned. I had plenty of school acquaintances who just wracked up debts until they got their grubby hands on well intended trust funds. Obviously, you can try and just keep it secret.
Maybe sitting down with someone who is 18 and drawing up a plan together as to what to do with the money is an idea? When I went to uni it was free and I had no worries. I imagine that the average intelligent kid today heading off to much more expensive living costs and huge fees will have worries that could impact how they perform or the descisions they make. It could be something that actually benefits him hugely in that regard and give him clearer focus rather than just running around 'making it rain'.
When I went to school (boarding) my father gave me a budget per term and told me that whatever amount I managed to return home with at the end of each term he would double. It's something that made me very frugal and also keen to earn money where possible as every pound earned was worth two. I managed to comprehensively stitch my father up while it also taught me the real value of money and how to not waste it and how to earn it which was obviously his intent. It has been incredibly beneficial to me in life.
Awesome. I shall be using this in the future. Thanks.However, in reality, there is no perfect way to plan a gift such as this and whatever you do could backfire or certainly not go as planned. I had plenty of school acquaintances who just wracked up debts until they got their grubby hands on well intended trust funds. Obviously, you can try and just keep it secret.
Maybe sitting down with someone who is 18 and drawing up a plan together as to what to do with the money is an idea? When I went to uni it was free and I had no worries. I imagine that the average intelligent kid today heading off to much more expensive living costs and huge fees will have worries that could impact how they perform or the descisions they make. It could be something that actually benefits him hugely in that regard and give him clearer focus rather than just running around 'making it rain'.
When I went to school (boarding) my father gave me a budget per term and told me that whatever amount I managed to return home with at the end of each term he would double. It's something that made me very frugal and also keen to earn money where possible as every pound earned was worth two. I managed to comprehensively stitch my father up while it also taught me the real value of money and how to not waste it and how to earn it which was obviously his intent. It has been incredibly beneficial to me in life.
Deposit for a property wherever he decides to work post Uni.
Being a landlord can be a massive PITA, how would / could he afford any potential bills that appear, one of the heating systems have just give up the ghost in one of mine, less than 10 years old!
Tuition fees are a red herring, he may never earn enough to pay them off, I wouldn't bother.
An old flatmate of a good friend inherited circa £200k at 18, all gone by 22, nothing to show for it.
Spent it on 10k sound system, taking his mates to Ibiza for the summer, drugs, watches ....
Being a landlord can be a massive PITA, how would / could he afford any potential bills that appear, one of the heating systems have just give up the ghost in one of mine, less than 10 years old!
Tuition fees are a red herring, he may never earn enough to pay them off, I wouldn't bother.
An old flatmate of a good friend inherited circa £200k at 18, all gone by 22, nothing to show for it.
Spent it on 10k sound system, taking his mates to Ibiza for the summer, drugs, watches ....
Think property or a low risk fund account is the best way to go for this, but I 100% wouldn't make him aware of the money (if possible?) for the time being. Leave it until he's 25 and it could be worth 30k+ if invested right, by 25 he should have an idea what he wants to do with it?
Random idea and not sure if it's even possible? Purchase a BTL or holiday let abroad, parents use the capital and get a mortgage, take profits from the rentals, when he hits 25 you sell the property and he can use the capital but only towards another property of his own?
Random idea and not sure if it's even possible? Purchase a BTL or holiday let abroad, parents use the capital and get a mortgage, take profits from the rentals, when he hits 25 you sell the property and he can use the capital but only towards another property of his own?
condor said:
S10GTA said:
condor said:
That sum could be used to pay his Uni tuition fees, which is probably the best way to spend it.
Don't do this.I would have thought that his Grandparents would be pleased to know that the money they've set aside for him is to go to fund his University degree.
Also, paying the fees is a gamble - he may not pass, or he may drop out for any number of reasons, which means the money is gone.
I can't help you on the financial side, but I can backup your decision not to allow him to be the master of his own finances. I got given a small sum when I went to Uni that my grandparents had saved for me. It wasn't much, and nowhere near what your lucky boy has. I spunked the majority of it drinking and making new friends within the first few months.
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