My son will waste his grandfather’s inheritance. Can I pay your university fees with it?

I am currently dealing with my late father’s estate. He left me 90 percent and the rest to my two children.

One of them is far from us. We saw him at the funeral but he was extremely drunk and upset. He will be taking a year off from medical school due to financial issues and is working to save for next year.

I’m worried that he is drinking too much (one of the reasons we asked him to leave the family home) and that he will waste the money he has left.

Can I pay your university fees or accommodation directly? PW, via email

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This is Money’s Harvey Dorset responds: I’m sorry about your father, as well as the problems with your son.

Regardless of your current relationship, it’s good to know that you want to make sure the money you have left is well spent and benefits you, whether you see it in the short term or not.

This is especially the case given the current problems you say you are experiencing with alcohol and your concern that you will waste the money passed down to you from your father.

Unfortunately, as discussed below, your hands are largely tied regarding what your child inherits and what he or she decides to do with the money.

In a way, your problem is not financial, but emotional. To ensure that your child benefits from the money you have left, it may be important to address your relationship with him.

In fact, for him to see that the money would be better spent on your student loan, he must understand that you want what is best for him.

We spoke to two financial advisors to find out what you can do to ensure your son spends his father’s inheritance wisely and what you should consider when planning your own will.

Jonathan Halberda, Specialized Financial Advisor at Wesleyan Financial Services, responds: First of all, my deepest condolences for the loss of your father and I am sorry for your situation.

Dealing with an inheritance can be a disturbing experience, especially when complicated family relationships are involved.

In this case, you may have some legal options for managing your child’s inheritance if you are concerned about his or her well-being and how he or she might use the money.

Here are four key points to consider:

1. Your role as executor

If you are the executor of your late father’s estate, then you are legally obligated to distribute the assets according to his wishes, as set out in his will.

Generally, this means that you must follow the specified instructions and provide your child directly with his or her share, unless there are provisions in the will that allow for an alternative arrangement.

2. Consider a variation deed

However, you may consider a variation deed. This allows beneficiaries to modify the way their inheritance is managed or distributed.

Simply put, it is a legal document that allows you to change your father’s will, but it is important to emphasize that this cannot be done unilaterally: you must also have your son’s agreement.

If your child agrees, you could work together on a variation deed that redirects his inheritance towards his university fees or accommodation.

3. Trust agreement

If the will allows it, or if a deed of variation is signed, it is possible to establish a trust to manage your child’s inheritance.

This could specify that funds held in trust be used exclusively for your educational expenses, living costs, or other specific needs.

This trust may limit your access to the funds and be structured to protect against potential misuse.

4. Legal advice

In situations like this, consulting an experienced wills and trusts attorney is highly recommended as they can help you establish legally sound agreements to achieve your goals.

Additionally, if you are concerned about potential disputes, legal guidance can help you protect the interests of the estate and ensure compliance with UK inheritance laws.

It is worth noting that, without specific permissions in the will or an agreement such as a deed of variation, any alternative use of your child’s share of the estate could risk breaching your executor duties.

This only holds the potential for more challenging situations to occur.

Paul Crossan, senior financial planner at Hargreaves Lansdown, responds: A will is essential for later life planning as it provides certainty and those who wish to benefit from your estate do so at the appropriate time.

Since his estranged son is over 18, he has no choice but to inherit his share, which was his father’s intention.

Sometimes wills can be changed after death by using a variation deed. All beneficiaries must agree to the change, and in this case, it is unlikely that your child will agree to be removed from the will.

You have the option of paying your child’s university fees and/or accommodation costs directly with your own money.

You should also consider your other child and whether you should give them a gift of equal value. If they don’t need the money, they could pay off their mortgage, save, or invest for their own future.

It also opens up a longer term issue; If your child’s behavior persists and he continues to be reckless with money and lifestyle, he may become uncomfortable with the fact that he will eventually inherit his own wealth.

Real world scenarios, such as addiction or emotional issues like this, are not uncommon and this is where a trust could be an option.

A trust would hold inheritance or gifted money for the benefit of your child, but it would be controlled by trustees appointed by you.

You could also provide guidance to the trustees on when and how to make payments to your child.

For example, paying only income, or only paying capital in specific circumstances such as the purchase of a property.

There would be numerous factors to consider whether a trust may be appropriate or not. A financial advisor or attorney could discuss these options. Trusts can be established during your lifetime or at your death through your will.

There may also be inheritance tax benefits for the person establishing the trust (the settlor), which is a common reason for people considering such trusts.

Putting money into a trust could mean your estate saves inheritance tax on the full amount once you survive seven more years.

Any growth in the investment above the initial amount can also be immediately protected from the inheritance tax that would have been paid from the parents’ estate.

This is a complex area and there is no one-size-fits-all solution when it comes to inheritance tax planning, so a detailed assessment and understanding of individual situations by an appropriate financial advisor or solicitor would first be necessary. qualified and experienced to discuss all options. .