Inheritance and University Fees
Discussion
My grandfather has just passed away and left me around £20k from his estate. Rather than fritter it away (which I could very easily do 
) I am thinking of using it to invest such that my children's University fees are covered in the future.
My oldest is 5 years old and my youngest is 1, so we're talking at least 15 years before we need the money and as a ballpark figure I was thinking of £80k being required to put them both through. If there's any cash over then so much the better.
My thoughts are buying a flat and doing the buy to let thing. A quick scan of BTL mortgages shows that they require a 75% deposit on a £100K flat which is not a problem as we can put the rest of the deposit up from savings.
Do you think I'm on the right lines here and that I would get the return I want in 15 years? Or is there any investments that I should look into?
Thanks.
) I am thinking of using it to invest such that my children's University fees are covered in the future.My oldest is 5 years old and my youngest is 1, so we're talking at least 15 years before we need the money and as a ballpark figure I was thinking of £80k being required to put them both through. If there's any cash over then so much the better.
My thoughts are buying a flat and doing the buy to let thing. A quick scan of BTL mortgages shows that they require a 75% deposit on a £100K flat which is not a problem as we can put the rest of the deposit up from savings.
Do you think I'm on the right lines here and that I would get the return I want in 15 years? Or is there any investments that I should look into?
Thanks.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ma...
Giving money if you're a parent or step-parent
There's no limit on how much you can give or invest for your children or grandchildren. But the interest might be taxed as your income if:
•you're the child's parent or step-parent
•your child's unmarried, not a civil partner and under 18
________________________________________________________________________________
I'm not 100% sure, but I presume that the word 'invest' would cover a BTL, so your children would be taxed at your rate?
Not something I know much about, but a trust fund may be worth considering for tax efficiency.
Aside from that, I assume you're already using their CTF / JISA allowances in full?
Giving money if you're a parent or step-parent
There's no limit on how much you can give or invest for your children or grandchildren. But the interest might be taxed as your income if:
•you're the child's parent or step-parent
•your child's unmarried, not a civil partner and under 18
________________________________________________________________________________
I'm not 100% sure, but I presume that the word 'invest' would cover a BTL, so your children would be taxed at your rate?
Not something I know much about, but a trust fund may be worth considering for tax efficiency.
Aside from that, I assume you're already using their CTF / JISA allowances in full?
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