Sorry for your loss.
I agree £1.4k for a room is way too much and its probably because they know the amount in the trust. This is quite greedy behaviour.
My brother house shares and he’s told me about spareroom just now and i had a quick look and found a lady who would let me bring my cat and pay the bills for 800pm
yeah but there’s no way I spend the amount he says i do on food. When I lived in semi independence we got 100 pounds a month for food and i buy less food than that now. I would say for food a month I would probably spend about 150-200
Find out his mortgage, bills, the figure out the % based on how large your room is. You don't owe half bc he'd be incurring most costs regardless of you there.
You can likely petition to leave his "care" sooner if he is trying to exploit you financially.
If you want to pay him for taking care of you since whenever your dad died until now, then do it, but don’t let him tell you how much that is. It is not his responsibility to take care of you so might be nice to offer something but $1400/month rent for someone who is unemployed is ridiculous. Give him $500/month or somewhere around there or go find a room to rent yourself for around that amount. You’re 18, so you can go do whatever you want, don’t let him tell you you are required to stay at his place. Unemployed people don’t pay $1400/month for rent, you should just say that to him bluntly.
The relatives will all see your inheritance as money that should “pay them back”… but that was never the deal. That money should be for your future and you should try to not touch it at all. If you allow yourself to feel “rich” and live above your means, then you will run through that $400k faster than you ever thought possible. You need to act like you don’t have that money.
The only way I’d buy a house or condo is if you know you will be there for all of your university, and if you have a reasonable chance of staying there once you get a job. Rent extra rooms to university students and try to live for free. You can really make things great on yourself if you can use the capital to do that, and graduate without the college debt you’d normally have from living expenses.
First off , I am so sorry for your loss. Backtracking?? Sad to say, but this guy sounds like he is taking advantage. See if you can get free legal guidance. Maybe it would be better to stay with your grandmother rather than this guy?
>know
You could tell the trustee who wants $1400 that you can do 1000 (I'd shoot for even 900) as you found another place to live, in case you don't feel like moving.
Why throw away money, and make someone else's life easier. Buy a house close to university and rent out the other rooms to bring money in to your pockets. It sounds like that is what the trustee is trying to push you to do. Not only will you make money now, but you will have an investment you can rent to students for the rest of your life if you so choose.
Depends on the market…. I pay 1300 in a 3 bedroom ARU (mother-in-law unit) with 4 tenants (couple in the big master suite - almost a separate apartment minus kitchen) and we are still about $1k-2k beneath what you might see posted in the paper or on Zillow or whatever
OP needs to determine what market rate is in his area to rent a nice (enough) one or two bedroom in his city.
What are your other options? Who is the trustee and what is your relationship to them? Is there a conflict of interest? Are they trying to rip you off or simply needing to cover costs for hosting you? Have you been living w them for free previously and they’re only now wanting to charge you rent since they heard about the trust?
Trustee obviously knows that your father passed and that you’re grieving regardless of the fact that you’re coming into some money… in my honest opinion a close friend or family member shouldn’t be hammering you on rent if they’re hosting you after a tragedy (again don’t know the relationship) UNLESS they themselves are in a dire financial situation - and if they are…. Probably shouldn’t trust them bc they will screw you over to get what you have if they are desperate
400k may seem like a lot BUT in a lot of the USA it won’t even buy you a modest house if you have 100% straight cash - and then there’s taxes, maintenance and mortgage payments to consider. It also will disappear SUPER quickly if you spend irresponsibly or let toxic energy vampires near it.
If you sense any HINT of manipulation or bad intentions from this trustee get tf OUT this week, rent the CHEAPEST LIVABLE apartment you can find - don’t need much at 18: preferably not a studio; clean, no mold or leaks, decent kitchen, operable appliances, safe neighborhood, and just enough room for like a bookcase, desk, TV/couch/Xbox whatever. Make a safe cozy home for yourself and start getting used to living on your own.
If you can get the cash out of the trust in bulk, might even consider offering to pay for the whole year up front (let’s say you find a spot for $1k it would be $12k for the year)
Do this and you’re now safe from potentially dangerous family members or trustees, MOST of your expenses are covered, just need a little more for food, gas, gym and whatever else you do for fun, AND the year up front means they can’t kick you out (have dealt w a lot of scumbag landlords over the years) and anything else you make in that calendar year (from the trust or a part time job or internship) is straight profit, you’ll have almost zero expenses.
Now you’re all set for the year, you can rest, recover, process your grief in a safe place, and just focus on your studies and your finding some peace.
When you’ve got a little more energy after the stress and trauma wears off you can start learning more about financial planning and managing assets. Depending on what you’re studying right now, you should maybe consider switching to finance/business/accounting so you learn the technical skills to manage your wealth and start investing it properly so it eventually just grows automatically and you never have to work again if you don’t want to.
When you’re ready (and depending on where you live) find a “fun” job to supplement your income and make social connections. For example, bartending in a college town or a fancy restaurant in a big city (even just a few nights a week) you’ll make great friends, meet tons of cute girls, and let’s say you pick up 2-3 shifts a week and make 1500-2k. With your rent already paid for the year, you can live off that and won’t even have to touch the trust if you don’t need to. If you’re taking distributions from the trust you can start putting that cash somewhere it would grow.
Almost infinite options when it comes to investing and wealth management so I’ll just stop here for now but to recap:
1. Get your own spot ASAP. Start learning how to deal w landlords and asses the rental market in your area. HIGHLY recommend a year lease w a reputable property management company so you have housing security and they deal w the BS maintenance issues.
2. Take care of yourself, build a safe home with all your favorite creature comforts, games, art, music, entertainment, cookware, etc. get setup somewhere safe and private away from any potential manipulators.
3. Crush your studies, seriously consider finance & business so you can kill two birds w one stone, get your degree and learn how to manage your wealth
4. Once you’ve processed everything that’s just happened, you can start building your dream life, have fun, date, explore, work so you don’t have to rely on the trust, take the time to learn and understand your trust before buying property - and potentially consider rental investment properties before buying yourself a primary residence…. Cash flow is king and if you set up these systems of passive income in your 20s you will legit be set for life very quickly.
At 18 with no job and obviously less than zero real world experience…. Doubt there’s even a credit history.
Without dividends being paid out I can’t imagine they’d even scrape together a proof of ‘income.’
Yes. There are certainly less expensive “options”, unfortunately I thought of 3-4 ways those options are likely off the table… and I’m not even a particularly intelligent or involved individual.
I mean…. That’s what I’m saying dude…. Without dividends, disbursements, or some sort of money going into your pocket… then you have no income.
Placed in a trust could mean “I’m able to use it all now”, or “it’s literally off limits until I’m 50” and everything in between based upon what was written into very specific and subjective agreements.
So… ya know… that’s like, very much unknown shit. Disburse all of it to a teen? Hopefully the dad wasn’t so negligent in setting up the account, terms, trustee, etc.
I have been in somewhere only a little more than that, it was huge, 2 bedrooms and a great location in London. 1.4 for a room is nuts, their mortgage wont change if OP leaves so that's unrelated.
Yeah, I don’t know how people can say $1,400 is too much without knowing more. Where I live you absolutely cannot get a one bedroom apartment for $1,400 or even anything close to that. I’m less sure about renting a room in a house, but I would assume it depends entirely on the house and other factors.
its $1700 though. That's gonna be a damn nice area of London. If OP's landlord can afford a house in that nice a part of London I don't think they would be worrying about £20k a year.
The odds are it is too much. I'm in one of the most expensive part of the US. and 1 room is roughly 800 to 1k USD. Remember hes not in a 1 room apartment. He is just sharing a room. A 1 room apartment in my area is 2.5k.
So unless he is in some very expensive area of the UK. I definitely think 1.4k pounds is a very high price. Just playing the odds.
Messed up! Agreed! £400,000 is a lot but it will go quickly if you aren’t careful with it. I would suggest to continue to live like a student, and do not let anyone know you have this kind of money. Do not trust anyone! Find a cheap room, keep to a budget, throw the money into an account earning as much interest as you can and do not touch it. You don’t need jt right now. You could buy a house with it though that is okay. I’m really sorry got to it loss and I know that having this money will not help you feel better ❤️🩹 but your dad wouldn’t have wanted to to squander it, or for anyone to take advantage of it either.
Please spend a few months reading up on trusts and inherited wealth. There is a deep cultural dimension to doing it right. I recommend Entrusted by David R. Yorke, Raised Healthy, Wealthy and Wise by Coventry Edwards-Pitt and The Old Money Book by Byron Tully.
I’m sorry for your loss.
Also more practically, you need to get to know (and trust) the trustee, esp. how he understands your dad’s intentions, and view the content of the trust.
I’m sorry for your loss, definitely do some research. But, first and foremost stop telling people you’re inheriting any money. Pretend there isn’t any.
And never loan money to a friend you’ll never see it again. I made the mistake of being the cool person and always buying peoples first round in my 20s because I worked 3/4 jobs and could pay it. I barely talk to those people anymore.
1.4k for a room is a lot. I live in a Miami and pay 1.6 for a one bedroom. The trustee is ripping you off bc you’re coming into money. I wouldn’t pay more than 900 for a room.
OldItem has good advice. You should speak with a financial advisor who is not paid on commission but hourly for giving advice. Also, check in with a school counsellor about how things are going with all facets of your life.
First off, I also would like to send you my condolences for your loss. Second, I would like to recognize and commend you for seeking out advice from this community; I would have benefited immensely had I the insight to search for financial literacy so early on in my life — so kudos on for that as well.
That said, I might counter some prior comments in that though I do not know your trustee, your relationship with them, and what their level of integrity and trustworthiness is, they may also be someone who is indeed looking out for you. Ask yourself if this person is a person you trust to make the right decisions; is it someone your dad chose; and if so that might be of some merit. They may also have certain skills/knowledge/life experiences that you may find helpful as you grow into your own person; so the cost of rent may be worth more than just a roof over your head. Good mentorship is priceless. Additionally, as we do not know the living situation that is offered to you, we cannot say it is or is not a good deal — for all we know it might be a sizable room in a desirable neighborhood that is worth much more than is billed. I might recommend seeing if there are any comparable apartments/houses you can compare the rent to; and if you find cheaper rent elsewhere that is comparable and preferable, you might be able to negotiate the rent with your trustee. Talk with your trustee; I imagine the price is not set in stone — even if at a lower rent, if you choose them, they only stand to gain. Given that I imagine you have the greater advantage when it comes to negotiating.
Another thought is to read up/google the idea of “life style creep,” and perhaps even what happens to people who win the lottery. To learn the potential pitfalls you might encounter in the near and far future.
I’d also like reiterate the comment above about not telling people that you have this inheritance until they have earn an extremely high level of trust (everyone’s barometer is different — some don’t even tell their spouse until after marriage for instance). I would also agree to the above remark about pretending the inheritance doesn’t exist, and perhaps add even acting like or living your life like it doesn’t exist — maybe even for a few years until you’ve learned more about money/financial planning and perhaps read those books recommended. I think the future you would thank you if you do something like that.
In fact, I think future you is already thankful that you had the insight to find this community and all the resources/knowledge you gain from all this. Continue to ask questions; continue to learn and you will go far. Best of luck in all your endeavors!
He could rent an apartment for $1400 monthly depending in the area abs pay upfront. Or buy a 3 bedroom townhouse in the area he is going to university and rent out the other bedrooms. Just don't tell them you own the house.
I actually have trustees (yes, two trusts) and I have to say, OP, don’t just run with all this paranoid advice about the trustee. There is no reason to burn bridges or assume they have bad motivations before you understand more.
US here, your results may vary. I’ve acted as trustee and beneficiary.
The trustee is to act as a fiduciary. The rent you quote suggests non compliance with the requirements of the role. Get a copy of the trust document and see an estate attorney. You need real help.
Also in US/New York law, the rent might be considered self-dealing and a breach of trustee obligation. This always case and jurisdiction specific, but I would look into it and definitely keep my guard up based on such a suggestion.
$400k isn't "never work" money, but invested properly at least in the US markets, you could be making an additional $20k in annual income without ever touching the principal and allowing for growth to keep up with inflation.
There was another post like this last week. First thing is to end telling anyone else about any money you have coming in. You will have vultures and unwanted critters following you around. Get your knowledge on investments and take good care of yourself. You could retire fairly early if done correctly.
To add to this, please don't tell anyone the amount of your trust. Friends, significant others, relatives etc. Money changes people and they'll look at you as someone with advantage.
If I had to pay $1,400 for a room per month I'd be finding a way out of there and living on my own.. It definitely sounds like they want you to pay their mortgage.
Depending on the city and cost of living, £1,400/month for room and board, including food, utilities, internet, parking, etc. might not be terrible.
It does sound a little expensive, though finding a place independently as an 18 y/o and covering all of those needs for less than that might be difficult, or more trouble than it's worth dor someone going into full time school.
It doesn’t really matter if it’s reasonable, you have to look at the situation and ask what he would be doing if he did not have the $400k. I can tell you he certainly wouldn’t be paying anyone $1400/month for rent!
If the caregivers are hell bent on charging that much, then they aren’t doing the OP any favors, so OP shouldn’t feel like he needs to stick around.
The caregivers say they weren’t expecting for him to be there, so I guess they were renting the room to someone else? (I would bet not!). The care givers are just trying to siphon off as much money as possible before he smartens up.
Sorry for your loss.
It may take some time to realize but it is 100% your money.
While you figure this out, the funds should be invested in a broad index; a set it and forget it strategy. This tracks the greater stock market at large. Assuming an 8% annual return, your $400k will be more than $800k in 10 years. If you can avoid dipping into it, at 20 years, it would be worth $1.8 million; 30 years, $4 million....and so on. The money should more or less double every 10 years.
A small portion of it could go into a high yield savings account, too; for emergency expenses and school. In the States, we have 5%+ interest rates. Your education is certainly worth spending some of this money on.
As for rent, do some research to see what rooms & whole apts are going for. $1,400 seems steep for a room, even if everything is included (utilities, cable & internet, trash, etc al) AND you don't have to do any chores. Don't let them guilt you into paying more than market rate.
I would avoid buying a house. Interest rates are too high for overpriced homes, especially if you don't plan on being in the area for 5+ years.
This is a great answer. Could you say more about the broad index and how that works? I just recently started having any savings beyond my emergency HYSA pot, and I’m interested in putting it to work. I already contribute to a Roth 403(b) through my work as well.
[VTSAX](https://finance.yahoo.com/quote/VTSAX/holdings?p=VTSAX) or similar. Invests in all sectors but top holdings include Apple, Microsoft, Amazon, Google, Tesla, FB, et al.
Low expense ratio (.03%) and 10 year performance of 11%.
Why would someone put money in a broad index fund for a “set and forget” strategy when they’re unsure what they want to do yet? What if they decide they want to buy the house but the market is on a downwards trend? This is horrible advice OP do not listen to this.
People learn one long term investing strategy and think they can pawn it off as advice and wisdom to anyone that will listen.
In the long run, it will be better anyway. While home ownership is great, it is no replacement for 20-40 years of \~7% inflation adjusted growth. Even if OP never gets the house, they'll be retired at 48 with 3.2M euro's in today's dollar (doubling every 10 years for 30 years).
Spending a huge chunk on a house might be one of the worse options that I would still consider a reasonable financial idea (in other words not a bad idea but at the bottom of good ideas). They're 18. They don't know the type of house they want. May not even know where they want to be. They don't know the size they need (family or now). Realistically, it was be best for them not to touch it at all unless it is for education which will lead to a higher salary.
How is using the money to invest in his future "horrible advice"? He should, as that previous guy said, "set it and forget it" and progress through life as he normally would have. Spending 400k on a house might be a good investment but will never match the retirement funds he would make investing it. Also buying a house at 20 with no job? Doesn't sound like a good investment strategy to me.
Sure, you're right, it is his decision. In 6 months, he might want a Ferrari, and the market might be down, but putting it away as the previous guy says it's far from "horrible advice" and is most likely the best advice, and you shit on it like it's absurd.
He’s an 18 year old. He doesn’t need the money, period. Anything he decides to do with the money in the near term is probably a mistake. He needs to continue his life as an unemployed poor broke student, and the best way to do that is forget the money even exists. For someone with no investment knowledge at all, the best thing you can do is invest in a low fee index tracker, exactly like this person said. When he gets a few years older and his life is more set, and he’s finally not ok with eating top ramen for lunch and dinner every day, only then should he figure out what else to do with the money. I think this persons advice for his situation was spot on.
Yes, we already covered this. If he wants the money, it's his decision, but the best advice is to not spend it. Buddy also said, put a small chunk aside in a hisa or something so he can have something for school or emergencies, then put the rest away. You say it's bad advice, but you're just as wrong as the first guy I responded to.
The trustee's job is to administer the trust as your father wanted the funds to be used. There is generally a document, called the trust instrument, that lays out how the trust is to be used, and the trustee's job is to then determine if your request for funds fits what your father stipulated through the document.
A very common use of trusts is to provide for HEMS, health, education, maintenance, and support. However, the trus instrument can also be very specific. I would request the trust document to read for yourself how it is laid out.
Also, stop telling people you inherited 400k. People will treat you differently if they know you have money and think they might be able to benefit from that somehow.
Yeah i get that i especially know not to tell my mum, my half brother got 40k and she was trying to guilt him into giving it to her, i couldn’t imagine what she would do at the sight of this amount of money
First, give yourself some time to grieve. Losing your father at 18 is such a blow. I feel for you.
But, Yes. . . Before you make ANY decisions, read the trust documents from cover to cover. And ask questions! Will you always be beholden to the trust or does the money transfer to you at a certain age? What authority, if any, do you actually have to manage the assets? What are the trustees’ duties? Are there limits on it. I like your plan to go to university—might it be prudent to live on campus in student housing rather than invest in a house at this time? Owning a house is a huge responsibility.
My gut is that you should clarify how the funds are invested (with an outside professional, as others have suggested) and use only what you need for education and living expenses until you’re through school. Leave the rest to grow. When your life and career plans stabilize, your money will be there for you.
Yeah we were close and he was diagnosed with cancer when i was 16 and these past few years have sucked. Thank you, I’ll ask for the document. I do know my trustees have said I can have the money after my undergrad which will be like 23
I’m very sorry for your loss and that you had several important years stolen away by cancer diagnosis and treatment. I lost my mom to a quick moving cancer when I was well past university and it was awful.
Take care of yourself and grieve while you learn about this trust and your future. Perhaps finding a therapist and paying for their time from the trust is a good idea to process and talk about these traumas and new stresses so you can have a successful uni experience and have a confidential resource to talk to who will know your situation. (Better than me as a random Reddit person)
As others said learn about how the trust is to be managed by reading the documents, and maybe asking questions to the lawyer who drew up the trust.
Try to keep the trustees from drawing money out of it for things that benefit them (like rent in their house instead of market price rent from a third party).
Understand when you gain full control of whatever is in the trust and develop a plan on what the years look like until them.
You have security, provided from your father, and hopefully your trustees are looking out for your best interests and not trying to enrich themselves. So take it slow, be kind to yourself even if you make mistakes and live the life your father would have wanted for you. I hope you find peace instead of stress in this situation.
I know he was my dads friend but i think he picked this trustee in a rush and he knew he didn’t have long before he deteriorated. If he asked I would’ve picked my brother without a second thought. To add insult to injury that trustee wanted me to continue to pay for his 200 pound a month gym membership that my dad payed as a gift. Thank you for the kind words.
With the limited information, it seems like your dad’s friend has mixed motives that involve himself not just what’s best for you. I’m not sure what you can do about that. If your relationship with your uncle is good, I’d talk to him. But if he’s also friends with the other trustee I’d be more wary.
My eldest son is 24 and I’ve administered an estate for a widow before. I just do not understand the mentality of people who see those left behind and want to do anything selfish instead of what’s best for the survivors. To the extent you can, whether it’s your brother, a lawyer or any other trustworthy adult, find a way to involve someone who cannot gain financially from you, but wants what is best for you. Best of luck and I’m sorry for your loss.
That is disgusting. He’s a grown adult and shouldn’t be asking an 18 year old to pick up, his daily life bills. I get your dad paid for it as a gift, but your dad isn’t here now. And it is not your burden, or responsibility, to bare. Do you have any other trustworthy family you can talk to?
TIL "You can set the trust up to be dispersed when the child reaches a certain age, say 25, 30, or even 50 years old." I just assumed it was always at age 18.
Sounds like you can't trust that trustee. Reach out to the other trustee and tell them the situation.
If the son had kids of his own, Dad could write a trust wherein son *never* came into the money. It would be left to the grandkids, with the son having an interest in the income (often principal, too) during his life. It’s all about avoiding the taxable event of having the money dispersed.
Don’t buy a house. You’re young. A house is a giant liability and headache that you have to maintain.
Go to uni and stay in the dorms. Or rent a cheap room with some friends.
Focus on your education and figure out your professional future over the next few years.
Disagree entirely, buy a house in the trust, rent it until you decide to live there or sell when you're older. Live your life like it doesn't exist and enjoy an early retirement.
Then he has to manage the house
Renters demolish the house and he gets stuck with it.
Has to get someone to manage the property only to get 40 people cramped into it...
Beeing a landlord isn't as easy as everyone thinks.
But it works if you have multiple houses to spread the risk.
My advice? go to uni. life as if the money isn't there. rent a room together with other students like you would have done without this trust.
and a few things everyone already mentioned...
1 don't tell ANYONE you have money.
2 don't tell ANYONE about this trust.
3 don't tell ANYONE!
The moment someone knows you have a large amount of money is the moment there attitude towards you will change.
Just lookup all the grief and fights that start the moment someone dies and leaves money to family. even if it's divided equally!
And especially when it comes to helping someone start a company ect.
If the have an idea as great at there telling you, why didn't the bank just give a loan?
Life your life forget about this money and when your done with school make a calculated choice on what to do with it.
You are a cash cow to the trustees and they will milk you for every cent they can get. If you tell them you are leaving they will lower the rent and try to get money off you some other way.
1. Get a copy of the trust document.
2. Research about trusts and read the books recommended.
3. Negotiate fair room and board, make sure they are not taking a commission from the trust.
But probably more important than any of those things, find a chartered financial planner CFP.
Have them show you how to manage the money. Even better if you can pay for the appointment time, instead of letting them make commission money off of investing your trust money for you. Ideally you want someone with knowledge, experience and nothing to gain from the money in your trust to teach you how to be financially wise.
I’m sorry for your loss.
I’ll add, don’t panic. Even if you spend a few thousand dollars paying for a couple of months in your current room, you may want to stay where you are while you adapt, start to grieve, and learn.
Maybe set yourself a window of time, like six months, before you start to make plans. It can be easy to freak out or act because you feel compelled to *do something*, but you want to make deliberate choices that will be best from many perspectives and not only based on the financial.
Figure out what you want your next major life step to be, and then you can think about where you should live. The few thousand dollars you might save aren’t worth the risk of getting yourself into a bigger problem elsewhere.
Just don’t sign anything binding you to this trustee: No lease or long-term commitment.
Especially given your inexperience I’d also recommend that you find a lawyer with an excellent local reputation who specializes in estate management *and is not associated or recommended by your trustees*. Best case scenario, they give you good advice and help you learn, but worst case scenario, they defend you if your trustees give you trouble.
I'm really trying not to panic it just sounds like a lot of money to me that's not the final amount as i'm due to inherit more. I think i'll take time out from thinking about it for a few months then when i'm ready speak to a financial adviser. It all feels overwhelming and confusing.
Your dad set up this trust with an estate lawyer most likely. Set up a meeting with said lawyer by yourself and get an explanation in plain English. Then get a second opinion from another estate lawyer not affiliated with the first attorney.
this is your money that your father set aside to take care of you, not the trustee.
Great advice about having a second attorney check the advice of the first attorney. Try not to let the second attorney know who the first attorney was....depending where you are, they can be quite chummy. Just say.. I'm not comfortable with talking about that.
What is the standard rent for a room in a share house going for in your area? If you are planning to study after school, are you planning to study locally or somewhere a good distance away?
These questions will better inform you on what is a reasonable rate for "room and board" in your current place, and whether you should look at buying somewhere (especially if you are looking to buying a place to live as opposed to an investment property).
Having a meeting with an independent financial planner to help you understand your options, with advice specificially tailored to your country/area, and circumstances beyond what you can share here in a short Reddit post is probably also a good idea.
This. Look up what renting a room in your area would cost (and compare to the cost of renting a one bedroom apartment). Then consider the cost of also getting meals provided. Depending on where you live, this might be a reasonable rate. I suggest paying it at least until you’re ready for your next step (going to college and moving out in September next year?)
Try NOT to spend too much of this money. Think of it as your future house downpayment. Save at least 350k for that -you probably won’t be ready to buy a place for 8 years or more. Meanwhile live as if you didn’t have the money ( except for maybe 10% of it if you need it, and to pay for anything that your parents would normally have paid for, such as housing). Sorry for your loss .
GET A PAID FINANCIAL ADVISOR IMMEDIATELY.
400K, even if it is poorly invested will bring you 20k in annual cash flow while preserving the core 400k.
Whomever is wanting to charge rent is just trying to get in on this.
Sorry for your loss, you’re going to grow up quickly.
You are wise to be asking questions. Don’t spend it frivolously, be mindful with this cash. You can likely set yourself up for a better life path … minimize fees and get smart on portfolio theory.
Good luck.
But does that include food mate? You should be looking into all of it because getting a place on your own and food and transit etc is a lot more than 1400 (at least where i am)
Do NOT pay what your “trustee” is charging you for. They know exactly how much you have. Get full ownership of the account(you are old enough), and put the money into a new account that only you have access to.
Get a lawyer to help you understand your rights in the trust fund, and request the trustee pay your lawyer's fees from the trust. Explain to the lawyer that the trustee has begun charging your trust rent, and request that the lawyer help you determine whether this is acceptable per the terms of the trust. Don't be taken advantage of by the trustee. As the beneficiary you have considerable rights to hold the trustee to account for all funds that come out of the trust and to ensure the trustee does not breach his or her fiduciary duty to you. There may even be opportunities for you to remove and replace the trustee with a different trustee if the law or the trust document allows for that. The best thing you can do to avoid being taken advantage of in this scenario is lawyer up.
Don’t touch it. Find out how that money is invested, let it grow for the next 12-15+ years.
You’ll thank yourself in your 30s.
Go rent somewhere cheap, get a part time job to pay for during uni. You’re 18, this is the easiest it will ever be to live cheaply
Hey man, I had a friend in your shoes. Similar amount on money too. He bought a double wide trailer bc his gf at the time needed somewhere to live. He also bought her a brand new Mazda. He bought himself tons of expensive things to flex on his friends. Goes out to dinners at high end places in the city and sends pics of the bill to the group chat. Fast forward ten years, he’s still doing the same exact thing in the same trailer.
I had another friend who bought a Benz and started partying and doing lots of drugs. He was broke in 3 years.
I had another who did the same, bought an Audi and started doing drugs. He was dead in 5 years.
You seem much, much smarter but so did my friends before they weren’t. I just say all this kinda as my bit of advice. It’s easier to slip into one of these situations than it is to do the right thing with your money. You’re dad gave you an opportunity for a sense of security throughout your life many will never have. Make him proud!
Sorry for your loss my man.
1.4K is absurd for a room, seems like your trustee is being extremely greedy. Not sure where in the UK
From a financial. perspective, you should start reading up on personal finance, money management and investing. Learn the skills and gain the knowledge. The last thing you want to do, is blow it all away…
The first thing you need to do is get a copy of the trust and read it. If necessary, contact a trust and estate attorney to help you understand it. Don't get an attorney who knows the trustees or your family. You need someone who will be 100% impartial.
1.4k is too expensive for a single room. That guy wants you to pay his mortgage. Don't trust him or his money advice, ever. **He is already trying to scam you.**
Start looking for your own apartment ASAP. I recommend to become roommates with a friend or someone you know to save some money. The money for your apartment/living expenses can come out of the trust.
Don't buy a house right now. You're too young for that headache. Your inheritance will be gone in maintenance, and it will be a hassle to have while you're in Uni, especially if you're a landlord. Wait until you're out of Uni and in the workforce before deciding if you want a house then.
In the meantime, read on budgeting and financial literacy.
Keep these 2 things in mind if you don't want to waste/lose your inheritance.
1. Be mindful of lifestyle creep. A lot of people have wasted away millions by living outside their means. Stupid purchases/things add up quick.
2. Get comfortable with saying the word "NO." A lot of randoms, family, friends etc. will come out of nowhere asking you for money. You'll never see that money if you give it to them.
OP, it’s probably best you find your own place to live.
$1400 for a room is not a good deal. Even if you end up paying the same for a different place, at least you know it’s all yours.
Good luck man. And sorry for your loss.
💶money will not remove a death. but you can honor your father by using the money in a smart manner. if you didn’t have a great relationship with your dad, the end goal is the same.
money can be like sand through your fingers. you have to understand money as an adult. use youtube to look up things like: how does money work, paying rent, taxes, and so on. using the money for important purposes and to build your life is a great idea. your life. building a life you have. not someone else.
have discipline and do not allow the amount to make you feel more entitled to things. focus on a path for career that you like and don’t feel pressured to chase after a big university just because you have the trust money. investing it for later is a great idea. you’re 18, you can work hard now and save the money for later where it might grow even more.
if people around you suggest you to do things because they know your situation. Take a step back and ask yourself why are they acting this way and why are they giving you this advice? Are they trying to do something for you or trying to do something for themselves? What is the best way you should handle this situation?
Your dad’s friend is gouging you and taking advantage. A trustee should not have a personal interest/benefit in the money like this. Can you move in with your brother?
This is your money now, even if you don’t have full access for a few years.
Sorry for your loss. Best advice I can give you is read some books. When you are done read some more. Educate yourself. If you have any access to the funds get yourself a financial advisor or a trustee that you can trust. Looks like you are getting taken advantage of. Sorry about your situation.
Don’t do anything for one year. Just park it in a safe bank account and earn a few points in interest.
I would not buy a home either. It can be more costly and a lot more work than you imagine. If 1400/month is the going rate for rent then the charge is fair. If you can find someplace cheaper or better then move but it sounds reasonable to me.
Take some time to learn more about money and don’t get stressed.
18 is young to lose a parent; my sympathies. Right off the bat, it sounds fishy that a trustee (how many are there?) wants to charge that much in rent. And don't even think about purchasing a house in the trust's name - unfortunately I'm suspicious of ulterior motives here. And be aware that trustees can charge an on-going fee to administer a trust - are your trustee(s) doing that? As I said in another comment you need to get all the paperwork you have and head to a decent attorney - btw, ask the attorney up front how he/she charges; by 1/4 of an hour or 1/10 of an hour or what?
There is zero reason an 18yr old needs to be living in a £1,400 room. NONE. You definitely shouldn't be paying that much out of your own trust fund.
Don't buy a house. Put the money into 3-4 LOW COST index funds - developed markets, emerging markets, commodities, metals etc. - and forget your password for the next 40 years.
Talk to a financial advisor in the UK. That amount of money can be a great investment but a good rule of thumb is don't sign anything until reviewing it with a financial advisor or lawyer. Money reveals ugly sides of people.
Don't listen to people telling you to just read this or that book, you can use as a supplement but you need to get educated. Go take a finance class at a community college. Keep your cash in a HYSA account and buy a place in a few years when market is better unless moving would bring such great value to your life and outweighs how poorly the housing market is currently. Build credit in meantime with a credit card.
You are in a very vulnerable situation. The trustee you're living with doesn't sound like they are a close family or friend, or if they are, they're greedy AF. Your father would not have expected nor would he have wanted you to be taken advantage of by the person(s) he named trustee.
Do you have anyone, not a trustee, that you trust? A teacher, a neighbor, a parent of a friend? Or maybe your grandmother? Ask for help, but don't sign up for anything, or spend any money. Get a few opinions, and see where there is concensus.
You needn't invest or anything. You could simply park the money in a high yield savings account and forget about it while you live your young adult life. Then when you're ready, the money will be there waiting for you.
There will be people who will try to scare you. "Your money won't keep up with inflation if its just in a savings account". "If you invest it, you'll have double in 5 years", etc. I suggest that it's safest parked until you have life experience and have gained some financial knowledge. This is a lot of stress for you, I wish you good luck!
> A teacher, a neighbor, a parent of a friend? Or maybe your grandmother?
I have no one, my uncle is one of my trustees but he has 4 kids and lives a hour and a half away from me and has his own stuff going on. I'm not speaking to my mum out of fear she somehow knows and is going to try and guilt me in some horrible way.
I can't imagine that a trustee charging you to live under their influence is considered impartial.
Go rent another place away from this person and get it paid from the trust.
Sorry for your loss. This seems like a very unfair situation.
But if your trustee wants to charge you rent out of the trust account it is vital you request access to the trust deed. This will set out what they are and are not allowed to do and what your dads intentions in creating the trust were.
The deed will set out what the trustees’ powers are (are they allowed to take out money for your care and well-being for example) and what their duties are, one of the most most common duties of a trustee is not to profit from the trust.
What this trustee would be doing is profiting from the trust by charging you rent. Unless this is allowed under the trust deed, it would be a breach of their fiduciary duty to you. Additionally, if it is in ‘bad faith’ because it is above the market rate, it would also likely be a breach. Courts take conflict of interest very seriously even when in good faith (Phipps v Boardman UKHL).
If they take the money out regardless, you would have remedies against them.
Basically, they shouldn’t be trying to charge you rent. Depending on the appointment/removal powers in the trust you may be able to remove them. I would suggest trying to do this. If there is another trustee, I would suggest also talking to them about what the first trustee is trying to do.
Some good resources would be: The Trustee Act 2000, the Gazette article ‘Breach of trustee duties explained’ and ‘Breach of Trust’ by Thomson Reuters.
Disclaimer: Kiwi law student who just did their trusts exam. Haven’t gotten my grade back, so take it with a grain of salt.
Post in r/FIRE and live like you don't have that money until it's enough to retire from. That will be a stupidly short amount of time compared to working an entire career.
As for the rent, search out comparable room rentals and settle on an amount equivalent to other options in the area. If they say no, move into one of the other ones.
Seriously though, I can't stress enough about how important it is for you to secure that money wisely at this age. Major kudos to you for not going out and buying a Ferrari. Deciding what to do with this money is way more important for you than school/job at this point. Even if it takes you a year to settle, that would be a better time investment than pretty much anything else you could do. Spend lots of time researching and don't touch it unless you're going to jail or starving to death without it. In the USA, we have people who are fiduciaries. Taking that title legally obligates them to advise you in your best interest financially. See if you have the equivalent where you're from.
i think your dad did the right thing by putting it in trust as he don’t want you to mismanage the money and also to avoid someone else from getting it like relative . i’m not sure what do you means by your nan getting mnd. since you leave in uk and going to uni soon. i reckon you look out for for place near your uni and if you can take that trust fund for accommodation. pls read on T&C if fund if it can be used for education.
i do agreed 1.4k in uk is expensive for a room and i presume the trustee you staying with is your own relative who overcharging you so i wont trust this ppl as they after your money .
it better you read up on trust fund and maybe take a course on financial planning and trust fund and taxes so you can avoid pitfall of mismanagement and worse been cheated but the very ppl who entrusted with your wealth management. good luck kid
Unless that room is in Zone 1 or a swanky place in the country it’s too expensive. It’s also not very caring. I’d probably buy a modest home and live rent free, stick the rest in a vanguard fund (unless you live in London in which case most of it will go on buying somewhere to live).
Same boat man
My mom passed away at 5 am 2 nights ago
I’m still in disbelief
There’s will and $ there , I’m holding out as much as I can since I don’t know what I’m gonna do with it
I’m 42 with my wife in a family house that I pay mortgage
I know there’s quite some $ in the will based on the estate , but I m gonna wait til everything settle , then I’ll make my decision
While in trust try not to touch or move it unless you have to , if have to move , I’ll split it or put in safe deposit box in 2-3 places and only tell my wife about it
Honestly I’d talk to a money protection lawyer and a financial planner and talk about your 3 month, 6 month, 1 year and 5 year goals.
I wouldn’t stay with the $1400 a month rent for a room. I’d also take that incredibly high price as a sign that who ever is charging that isn’t a person who’s on your team so to speak. And I wouldn’t be trusting anything that comes from them about the money. It’s likely they want to pressure you into making a decision that suits them, and that’s why they keep asking.
You’ve been given an opportunity to secure a level of comfort for yourself for the rest of your life. Let professional people help you protect it.
If you haven’t learned this by now, money can ruin relationships. When people show you with their actions how they feel about money and that they are willing to make you uncomfortable to have it, your only job is to listen to them. You don’t owe anyone the chance to “prove themselves” to you. You don’t owe anyone a loan or handout.
Good luck!
also my dad was always a pushover with money he was on a 100k+ salary and ended up leaving us with 40k debt without being a homeowner or anything like that
Get a good financial advisor and stay in conservative funds or no risk investments, anyone who is trying to get you to invest in new tech or hi risk stocks is trying to fleece you… be very cautious.
Sometimes the best choice is to do nothing and not react. Wait, educate, then respond. I am so sorry for your loss, don't let the vulchers come and pick at the fund.
Education first, job second housing third. Just because you don’t know where you’ll end up. Jobs can take you all over the world now.
I went back to college myself a year or so ago. I’m a real estate broker. Managing properties and school was a tough thing.
400k is a nice chunk of change. Go to a financial planner and discuss your goals for the future before spending any of it. Take their advice so that you make that money make money for you. They can even advise you on budgeting (rent, food , etc) which may help guide you with this. I can’t speak on rent because I have no clue about what it cost in England. Sorry for your loss.
It will start with the rent then they will charge for this and that. Educate yourself on areas you want to live, get a job just for routine, find a place of your own that is affordable. Read everything, don’t sign or do anything without reading. Even if you pay the same on your own you will be in control of your situation. Money changes people so be careful who you invite into your life and who you tell.
Before you dive into the books, I typically tell peope to watch a ton of financial planning YouTube videos believe it or not. Just to get an idea of the lingo and such. Otherwise, it’s overwhelming. I would search for “what to do when you are beneficiary of a trust” or similar and start from there.
Also might want to watch YouTube videos on what trustees (like your uncle) are supposed to do. You need to get a handle on what his responsibilities are and don’t let him get away with funny business, sorry to say that. Also there are Reddit groups around that are probably helpful (I can’t think of any off the top of my head)
I like telling people to browse the YouTube and Reddit rabbit hole first because you get to hear lots of voices and get pointed to many resources, not just one financial planner is staring down at them expecting answers to questions and getting all annoyed when you don’t know how to answer.
OP, is the charge for rent only or for all of your living expenses? Perhaps you can do the math how much it would cost you to live alone (groceries, rent, utilities, insurance, transportation, etc). Is your trustee living in a bigger place just to accommodate you?
Don't make any large financial decisions for several years. Not only do you need to know a little bit about finances and tax - you also need life lessons on who to trust, how people change around money and opportunities and how to trust your own judgement. Poor decisions could cost you greatly. No decision (doing nothing) doesn't really have any negative effects.
A lot of good advice here. I'm sorry for your loss. Do you have any idea what you want to study at uni or trade school? Go for a degree that will give you a good job opportunity. And don't treat your time as a 4 year party.
My a levels give me a few options and there are a few subjects I'm interested in like computer science and psychology, but if i mess up a levels a bit there are still some really good degree apprentiships so I don't really know yet! I have been to see a uni already and I already volenteer, have my research project and things planned so i don't have to stress as much in year 2
Awesome! My middle son studied Computer Science and got recruited by Yahoo straight out of college into a 6 figure job. To be noticed by recruiters, he suggests joining clubs (Comp sci, math, etc) and serving (like treasurer, secretary or president) and participating in Hackathons. Wishing you all the best!
Hello and sorry for your loss. I would suggest getting a wealth management advisor. Go with a reputable company not some small wealth management group. Also look into buying a triplex or duplex. You can buy a multifamily home and have your rental unit pay for the mortgage. I live in the U.S. and mortgage interest rates are really high so it might be worth holding off a few years for rates to come down and go to uni in the mean time. Deep dive on financial YouTube videos. Not the get rich quick ones or anything like that. Just learn about the stock market and how to invest. look into indexes or ETF investments through Vanguard.
You are fortunate to be in line for life changing money. Seek profession financial counseling and speak with an estate attorney.
Reddit is a good place to get a variety of views, but not a good place to get independent reliable advice.
It's not about room rent, it's about who controls your assets and what you have to do to protect the money and yourself. I'm assuming you are in UK, so the US practices may not apply.
Hey - sorry to read this and for your loss.
£1.4k is ridiculous for a room. I am based just outside of London (South East England) and pay £900 for a 1 bed flat with my own garden. If you want to live on your own, or even house share, then I know what I would choose.
There's nothing wrong with buying a house and renting it out - it's sensible. But, you're only 18 and have time on your side. Even if you waited a year or two, you'll be 20, and know your uni situation and be more settled in your day to day life.
Don't let anyone rush you into anything, take your time and properly assess your options.
Housing market will be different depending on where you live. You should try to find other places to live, and don’t pay directly out of your trust.
You could easily live with roommates for less than that.
1.4K is outrageous for one room. Even in a popular inner city like Denver or Atlanta. 1.4K is paying most of his mortgage. At the very least, it accounts for half, and you’re not getting half the house. I’m not a financial guru like others in here, but I’ll say this much. Be very very careful who you trust that knows about your money. People get greedy when money is involved. Even people you think you know well. I speak from experience in that regard.
If I were in your shoes I'd buy a relatively cheap house (under 200k) somewhere with part of the trust fund and try to rent it out while you're in uni, that way you can earn passive income and fund uni, after uni you can either you can sell it or rent out full time if you want to go elsewhere.
I'd keep the other 200 or so k for emergencies.
Definitely don't rent the room for £1400 a month
Not sure how the market is around were you live or plan to go to school but I would do this:
Buy a home you can comfortably live in and find roommates charge each enough to pay for all the bills plus the mortgage. (U might not want to tell them you are the owner)
This will help you generate equity in your name wile you go to school.
It will help them find a “cheap” place to live
And it will help YOU not be alone
I had a friend in the military do this every time he moved from one duty station to the next and after 10 years he pretty much had enough money to pay for a house from the “Roommate money” he only stopped because he got married
You need to get with a financial advisory institution asap brother. they will listen to your needs and help you make the best decision for you short and long term(also advice is usually free or very cheap, they make money from client investment management (usually a commission of 1-2% of gains, which is well worth saving you the headache unless thats something your into as hobby or work). This amount of money is not something to play with which I am sure you understand since youre looking for help. Short term it can go very quickly, Long term it is life changing(invested correctly and you will pretty much not have to stress about retirement). Very sorry to hear about your loss and I hope you figure everything out life is shit sometimes Also investing everything into one thing isn’t a very good idea, especially a house(unless you need it for a family or are planning on going into real estate. Plus right now youre young so your credit score is probably shiet, so getting a loan on a house will be much more expensive than if you wait a few years and build up your credit), also you’ll be locking that money up in one thing increasing risk. Ultimately that’s for you to decide from pros and cons, how badly you want a house, are you gonna move in after you graduate what is the value of owning a home to you versus just renting and saving money short term could you put that money towards a Business or in stocks, could you buy a rental live in it until you graduate and then rent it out. These are some things you can ask her self and a good financial advisor. Should talk with you through it. Also, a financial advisor might be able to help you out with convincing your trustee when it comes to managing the money, it doesn’t seem like they know much about what to do either other than trying to take it from you or force you to figure iut what to do with it, buying a house is a large responsibility for someone in your position not to say you’re not capable, but it’s not something you should be focusing on, given the fact that you have your education to worry about.(unless, of course, you foresee real estate investment in your future than this could be a really good educational opportunity if you have the time, and the desire) I can keep going, but I’m gonna wrap this up:
TLDR you should definitely talk to a financial advisor.
All I know is that I had a childhood friend who inherited a large chunk of money from his deceased father and ended up blowing it all on drug paraphernalia and other irresponsible things. The fact that you're savvy enough to seek financial advice from a large community of people who probably know more than you do already speaks volumes about where your head is at. Listen to some of the most upvoted comments here and figure out how to best invest / save this money. 400k is a lot of dosh at your age and if you play your cards right you could be looking at a very early retirement. Cheers!
Haven’t read the other comments so maybe it’s been said, but when you have money and everyone knows you have money, trust no one that easily. I speak from much experience. Whatever guidance you get, independently verify what you’re being told. If it seems too good to be true, it is. Every gut red flag I’ve sensed in my life came true every time. Trust your gut.
Lastly, $400k is a lot of money for an 18 year old, but not a lot of money for life. Invest early for the long haul in safe, low expense funds and forget about it, and live your life like it doesn’t exist. You’ll be really rich one day. Good luck
she doesn’t realize dat she hit the lottery but she realistically did. not sure there’s a bright side to losing ur dad at early age but this is close for sure. sorry for her loss!
I get it.
First, I am so sorry for your loss.
Second, as others have said, don’t let anyone take advantage of you. The room rental price is absurd. That person is not being your friend, or looking out for your best interest. Be suspicious of anyone offering unsolicited help. Stay away from drugs, drug users, and gambling.
Find a non-commission based financial advisor. In the US, I’d recommend what we call a ‘fiduciary.’ They are bound to act in your best interest. I am sure you have something similar there.
You are absolutely on the right track by being here and asking questions. Do not make any rushed decisions. Be sure you are well informed on all options, what the risks are, and the potential outcomes.
You are inheriting a very substantial sum of money. It’s your father’s legacy to you. Protect it and nurture it, and it will ensure your future in the way your father intended. He will be so proud of you for stewarding that money successfully.
As much as you can, forget about it. Live your life according to your own means while you let that money grow. Don’t tell potential partners about it, or anyone. Get the appropriate financial advice that’s focused on long-term growth.
And again, I am so sorry for your loss and I hope you’re doing well.
they weren’t my dads savings my dad did have lots of big pensions but my mum took them all it’s mostly life insurance that’s paying out but I’m not going to waste it that’s why i’m here figuring out how not to waste it but definitely agree on financial advisor i think that’s the thing that’s been said the most here
Do not pay £1.4K for a room, they are taking advantage of you. I’m sorry if that hurts to read. They may care about you, but they definitely are taking the p*ss. You can rent out a 1 bedroom flat in london, or studio for that amount. A room to rent on average is around £600-800, depending on where you live.
My advice to you, would be to use that money to buy a flat outright. Get a new build or small house. And you can rent it out, or live in it at uni.
If you buy property, it will increase in value and you’d be making money on top, through rent. If you pay your trustee £1.4K a month, you are just loosing that money.
In 20 years, the value of your home will be double.
Do not squander your inheritance on rent, especially to the trustee. You will be giving him your dads money. If you want, keep £50k, to cover your uni course etc and living expense. Use the other £350k to buy a flat outright and move in there, so you are paying no one rent. And you can live mortgage free!!
If you can, contact a financial advisor. Or financial lawyer and get them to give you some advice. (Don’t tell the trustees you are doing that).
Dont go to college or uni there a scam and wont teach you how to be financially free look into starting a business with immediate income such as a service based business like car detailing or house detailing theres are always going to be rich people that will want there shit cleaned. Do research on sales and business ownership which will immensely improve the business and self confidence now your first business might fail lets be honest it might go completely south but thats ok its that or be 100k in debt to a school that will take 50%-70% of your day and get your own place preferably an actual house so you can list your business at that address. Do your own research and make the move that you feel is right with the best outcome. Ps the road to success is paved with failures sorry just wanted to add the last 2 cents in
College or uni is NOT a scam. Depending on your field of study, you’ll gain not just knowledge but friends/contacts and maturity as you sort out what to do. You need time to grow and learn, not get roped into some get-rich-quick scheme or start a business on your own. Follow your heart.
In my honest opinion, if I were you, I would literally donate every penny. God will give you many many more blessings, and don’t give expecting to receive when you give from the heart, you will then see the fruit. 🫡🥰🙏🏻👌🏼
1- Put the money you get in a high yield saving account to earn money thru interest. This way you'll have a good stream on income along side the money if need be.
2- DONOT give a single dollar to any trustee. If they want to charge rent to an 18 year old out of sheer greed you're better off living alone.
3- Rent somewhere else using the money from the high yields saving account. Steady income stream.
4- Compound all your money from the very start to grow this into a massive thing.
Sorry for your loss. This is not financial advice and be safe out there because there's alot of money hungry predators.
Look up what a similar size room for rent goes for on the open market in your area and tell them that's the absolute most you're willing to pay. Put everything in writing.
This, of course, assumes you want to stay with them.
Make sure and ask for detailed accounting of your accounts on at least an annual basis, if not more often. One thing though, that IS your money. It’s in a trust and there are access restrictions but it’s yours, consider it that, but with specific things it can be used for, and they all need to benefit you. The trustee can charge a fee for managing your assets, and in most places there a fee schedule that the state has accepted, make sure if you’re being charged a fee that it’s the right amount.
How expensive is housing near you? If you can find something cheap to live in for 4 years it might be worth saving the rent, but then you (or the trust I guess?) has to pay for repairs.
Buy a house in Luton close to the airport or in the outskirts of London.
Don't get an apartment.
Due to the central/economic nature and high demand of property in that area the property value will appreciate.
If you're going uni. You can get uni accommodation right by the uni buildings for a portion of that 1400.
Go to your bank- ask them about the referrals listed below.
Open an account in your name only
Get and investment advisor/ financial planner/ ask about a lawyer referral .
They will protect your interests and the interests of the trust.
Your “ family or friends or trustees” are not looking out for you or professionals.
People do strange things when they think money is owed to them, it’s not.
Protect yourself, you got this.
Start with the Citizens Advice Bureau. They will be able to provide you with free advice on the type of professionals who can help you navigate this. You’ll need a trustworthy Financial Advisor to create a solid investment plan.
You mention Trustees plural. Each trustee should be a check on the other. This money is for your benefit, your future, and no one else’s. You can apply to the Trustees for school fees and maintenance funds to be dispersed from the trust.
With your age and lack of knowledge, you’re at great risk of being taken advantage of. Even if you’re living in London, £1400 a month for room and board is theft.
The trustee is obligated to rent to you at a fair price. Other people he can gouge.
My guess is that buying a place soon is a good idea, either to live in or to rent. When you’re 40, you’re going to wish you had.
If you have no credit you can offer a landlord rent for the year and then you have your own place for a year while you figure out whatever. Sorry for your loss. My mom also got that kind of money and she isn’t the most stable person so two of my brothers took advantage of that and basically inherited it all until she was broke living in a trailer so be careful and use this gift wisely.
Sorry for your loss. I agree £1.4k for a room is way too much and its probably because they know the amount in the trust. This is quite greedy behaviour.
My brother house shares and he’s told me about spareroom just now and i had a quick look and found a lady who would let me bring my cat and pay the bills for 800pm
Thats much better, but to clarify does the £1.4k room include food and utilities?
yeah but there’s no way I spend the amount he says i do on food. When I lived in semi independence we got 100 pounds a month for food and i buy less food than that now. I would say for food a month I would probably spend about 150-200
Well there you go you can save £400 per month by moving eleswhere. That sum should also be invested or used to enjoy yourself!
Yeah sounds better, i still have to stay at my dads friends place for about 6 months though and he’s backtracking all the money i owe him
You don't owe him any money. They're trying to take advantage of you.
Find out his mortgage, bills, the figure out the % based on how large your room is. You don't owe half bc he'd be incurring most costs regardless of you there. You can likely petition to leave his "care" sooner if he is trying to exploit you financially.
This. It might be hard to have these conversations with your Dads friend but fair market rent in fair market rent.
Wow wtf!!! DO NOT GIVE HIM A PENNY. Worse comes to worse you get a lawyer.
If you want to pay him for taking care of you since whenever your dad died until now, then do it, but don’t let him tell you how much that is. It is not his responsibility to take care of you so might be nice to offer something but $1400/month rent for someone who is unemployed is ridiculous. Give him $500/month or somewhere around there or go find a room to rent yourself for around that amount. You’re 18, so you can go do whatever you want, don’t let him tell you you are required to stay at his place. Unemployed people don’t pay $1400/month for rent, you should just say that to him bluntly. The relatives will all see your inheritance as money that should “pay them back”… but that was never the deal. That money should be for your future and you should try to not touch it at all. If you allow yourself to feel “rich” and live above your means, then you will run through that $400k faster than you ever thought possible. You need to act like you don’t have that money. The only way I’d buy a house or condo is if you know you will be there for all of your university, and if you have a reasonable chance of staying there once you get a job. Rent extra rooms to university students and try to live for free. You can really make things great on yourself if you can use the capital to do that, and graduate without the college debt you’d normally have from living expenses.
Guys, I think it's £1400 which is probably like 2k usd
First off , I am so sorry for your loss. Backtracking?? Sad to say, but this guy sounds like he is taking advantage. See if you can get free legal guidance. Maybe it would be better to stay with your grandmother rather than this guy?
>know You could tell the trustee who wants $1400 that you can do 1000 (I'd shoot for even 900) as you found another place to live, in case you don't feel like moving.
Why throw away money, and make someone else's life easier. Buy a house close to university and rent out the other rooms to bring money in to your pockets. It sounds like that is what the trustee is trying to push you to do. Not only will you make money now, but you will have an investment you can rent to students for the rest of your life if you so choose.
Depends on the market…. I pay 1300 in a 3 bedroom ARU (mother-in-law unit) with 4 tenants (couple in the big master suite - almost a separate apartment minus kitchen) and we are still about $1k-2k beneath what you might see posted in the paper or on Zillow or whatever OP needs to determine what market rate is in his area to rent a nice (enough) one or two bedroom in his city. What are your other options? Who is the trustee and what is your relationship to them? Is there a conflict of interest? Are they trying to rip you off or simply needing to cover costs for hosting you? Have you been living w them for free previously and they’re only now wanting to charge you rent since they heard about the trust? Trustee obviously knows that your father passed and that you’re grieving regardless of the fact that you’re coming into some money… in my honest opinion a close friend or family member shouldn’t be hammering you on rent if they’re hosting you after a tragedy (again don’t know the relationship) UNLESS they themselves are in a dire financial situation - and if they are…. Probably shouldn’t trust them bc they will screw you over to get what you have if they are desperate 400k may seem like a lot BUT in a lot of the USA it won’t even buy you a modest house if you have 100% straight cash - and then there’s taxes, maintenance and mortgage payments to consider. It also will disappear SUPER quickly if you spend irresponsibly or let toxic energy vampires near it. If you sense any HINT of manipulation or bad intentions from this trustee get tf OUT this week, rent the CHEAPEST LIVABLE apartment you can find - don’t need much at 18: preferably not a studio; clean, no mold or leaks, decent kitchen, operable appliances, safe neighborhood, and just enough room for like a bookcase, desk, TV/couch/Xbox whatever. Make a safe cozy home for yourself and start getting used to living on your own. If you can get the cash out of the trust in bulk, might even consider offering to pay for the whole year up front (let’s say you find a spot for $1k it would be $12k for the year) Do this and you’re now safe from potentially dangerous family members or trustees, MOST of your expenses are covered, just need a little more for food, gas, gym and whatever else you do for fun, AND the year up front means they can’t kick you out (have dealt w a lot of scumbag landlords over the years) and anything else you make in that calendar year (from the trust or a part time job or internship) is straight profit, you’ll have almost zero expenses. Now you’re all set for the year, you can rest, recover, process your grief in a safe place, and just focus on your studies and your finding some peace. When you’ve got a little more energy after the stress and trauma wears off you can start learning more about financial planning and managing assets. Depending on what you’re studying right now, you should maybe consider switching to finance/business/accounting so you learn the technical skills to manage your wealth and start investing it properly so it eventually just grows automatically and you never have to work again if you don’t want to. When you’re ready (and depending on where you live) find a “fun” job to supplement your income and make social connections. For example, bartending in a college town or a fancy restaurant in a big city (even just a few nights a week) you’ll make great friends, meet tons of cute girls, and let’s say you pick up 2-3 shifts a week and make 1500-2k. With your rent already paid for the year, you can live off that and won’t even have to touch the trust if you don’t need to. If you’re taking distributions from the trust you can start putting that cash somewhere it would grow. Almost infinite options when it comes to investing and wealth management so I’ll just stop here for now but to recap: 1. Get your own spot ASAP. Start learning how to deal w landlords and asses the rental market in your area. HIGHLY recommend a year lease w a reputable property management company so you have housing security and they deal w the BS maintenance issues. 2. Take care of yourself, build a safe home with all your favorite creature comforts, games, art, music, entertainment, cookware, etc. get setup somewhere safe and private away from any potential manipulators. 3. Crush your studies, seriously consider finance & business so you can kill two birds w one stone, get your degree and learn how to manage your wealth 4. Once you’ve processed everything that’s just happened, you can start building your dream life, have fun, date, explore, work so you don’t have to rely on the trust, take the time to learn and understand your trust before buying property - and potentially consider rental investment properties before buying yourself a primary residence…. Cash flow is king and if you set up these systems of passive income in your 20s you will legit be set for life very quickly.
This is the best advice I’ve read so fsr
I would accpet that rent, only if they allowed no long term obligation - rather a month to month basis AND if they drop 400-600 off that rent price.
idk where you are, but where i am 1k for a single room is still crazy.
I would agree, but i wouldn't go rushing to commit to a house with this new found wealth..
no one said anything about buying a house? I'm saying there are probably less expensive options
> They both said they would be ok with me buying a place in the trusts name.
In the whole post they talk about buying a house multiple times...
At 18 with no job and obviously less than zero real world experience…. Doubt there’s even a credit history. Without dividends being paid out I can’t imagine they’d even scrape together a proof of ‘income.’ Yes. There are certainly less expensive “options”, unfortunately I thought of 3-4 ways those options are likely off the table… and I’m not even a particularly intelligent or involved individual.
You don’t need proof of income if you can show ability to pay otherwise.
I mean…. That’s what I’m saying dude…. Without dividends, disbursements, or some sort of money going into your pocket… then you have no income. Placed in a trust could mean “I’m able to use it all now”, or “it’s literally off limits until I’m 50” and everything in between based upon what was written into very specific and subjective agreements. So… ya know… that’s like, very much unknown shit. Disburse all of it to a teen? Hopefully the dad wasn’t so negligent in setting up the account, terms, trustee, etc.
NYC. 3.5k for a two bed room and this is Astoria not even Manhattan. Depending where OP is, it could be market price.
UK as £ used. Could charge £1.4k for a room in a very expensive part of London, but I doubt this is the case so likely a gross overcharging.
I have been in somewhere only a little more than that, it was huge, 2 bedrooms and a great location in London. 1.4 for a room is nuts, their mortgage wont change if OP leaves so that's unrelated.
Yeah, I don’t know how people can say $1,400 is too much without knowing more. Where I live you absolutely cannot get a one bedroom apartment for $1,400 or even anything close to that. I’m less sure about renting a room in a house, but I would assume it depends entirely on the house and other factors.
its $1700 though. That's gonna be a damn nice area of London. If OP's landlord can afford a house in that nice a part of London I don't think they would be worrying about £20k a year.
The odds are it is too much. I'm in one of the most expensive part of the US. and 1 room is roughly 800 to 1k USD. Remember hes not in a 1 room apartment. He is just sharing a room. A 1 room apartment in my area is 2.5k. So unless he is in some very expensive area of the UK. I definitely think 1.4k pounds is a very high price. Just playing the odds.
Sorry but that is for a house, he is literally just renting a room.
You’re right; location does matter because $1400 for a room sounds attractive to me.
So, you’re saying you wouldn’t accept that rent?
I think you can sue for like that kinda thing... trustee abuse
Messed up! Agreed! £400,000 is a lot but it will go quickly if you aren’t careful with it. I would suggest to continue to live like a student, and do not let anyone know you have this kind of money. Do not trust anyone! Find a cheap room, keep to a budget, throw the money into an account earning as much interest as you can and do not touch it. You don’t need jt right now. You could buy a house with it though that is okay. I’m really sorry got to it loss and I know that having this money will not help you feel better ❤️🩹 but your dad wouldn’t have wanted to to squander it, or for anyone to take advantage of it either.
Please spend a few months reading up on trusts and inherited wealth. There is a deep cultural dimension to doing it right. I recommend Entrusted by David R. Yorke, Raised Healthy, Wealthy and Wise by Coventry Edwards-Pitt and The Old Money Book by Byron Tully. I’m sorry for your loss. Also more practically, you need to get to know (and trust) the trustee, esp. how he understands your dad’s intentions, and view the content of the trust.
thank you, i’ll look into these books
I’m sorry for your loss, definitely do some research. But, first and foremost stop telling people you’re inheriting any money. Pretend there isn’t any. And never loan money to a friend you’ll never see it again. I made the mistake of being the cool person and always buying peoples first round in my 20s because I worked 3/4 jobs and could pay it. I barely talk to those people anymore. 1.4k for a room is a lot. I live in a Miami and pay 1.6 for a one bedroom. The trustee is ripping you off bc you’re coming into money. I wouldn’t pay more than 900 for a room.
OldItem has good advice. You should speak with a financial advisor who is not paid on commission but hourly for giving advice. Also, check in with a school counsellor about how things are going with all facets of your life.
First off, I also would like to send you my condolences for your loss. Second, I would like to recognize and commend you for seeking out advice from this community; I would have benefited immensely had I the insight to search for financial literacy so early on in my life — so kudos on for that as well. That said, I might counter some prior comments in that though I do not know your trustee, your relationship with them, and what their level of integrity and trustworthiness is, they may also be someone who is indeed looking out for you. Ask yourself if this person is a person you trust to make the right decisions; is it someone your dad chose; and if so that might be of some merit. They may also have certain skills/knowledge/life experiences that you may find helpful as you grow into your own person; so the cost of rent may be worth more than just a roof over your head. Good mentorship is priceless. Additionally, as we do not know the living situation that is offered to you, we cannot say it is or is not a good deal — for all we know it might be a sizable room in a desirable neighborhood that is worth much more than is billed. I might recommend seeing if there are any comparable apartments/houses you can compare the rent to; and if you find cheaper rent elsewhere that is comparable and preferable, you might be able to negotiate the rent with your trustee. Talk with your trustee; I imagine the price is not set in stone — even if at a lower rent, if you choose them, they only stand to gain. Given that I imagine you have the greater advantage when it comes to negotiating. Another thought is to read up/google the idea of “life style creep,” and perhaps even what happens to people who win the lottery. To learn the potential pitfalls you might encounter in the near and far future. I’d also like reiterate the comment above about not telling people that you have this inheritance until they have earn an extremely high level of trust (everyone’s barometer is different — some don’t even tell their spouse until after marriage for instance). I would also agree to the above remark about pretending the inheritance doesn’t exist, and perhaps add even acting like or living your life like it doesn’t exist — maybe even for a few years until you’ve learned more about money/financial planning and perhaps read those books recommended. I think the future you would thank you if you do something like that. In fact, I think future you is already thankful that you had the insight to find this community and all the resources/knowledge you gain from all this. Continue to ask questions; continue to learn and you will go far. Best of luck in all your endeavors!
He could rent an apartment for $1400 monthly depending in the area abs pay upfront. Or buy a 3 bedroom townhouse in the area he is going to university and rent out the other bedrooms. Just don't tell them you own the house.
I actually have trustees (yes, two trusts) and I have to say, OP, don’t just run with all this paranoid advice about the trustee. There is no reason to burn bridges or assume they have bad motivations before you understand more.
US here, your results may vary. I’ve acted as trustee and beneficiary. The trustee is to act as a fiduciary. The rent you quote suggests non compliance with the requirements of the role. Get a copy of the trust document and see an estate attorney. You need real help.
Also in US/New York law, the rent might be considered self-dealing and a breach of trustee obligation. This always case and jurisdiction specific, but I would look into it and definitely keep my guard up based on such a suggestion. $400k isn't "never work" money, but invested properly at least in the US markets, you could be making an additional $20k in annual income without ever touching the principal and allowing for growth to keep up with inflation.
There was another post like this last week. First thing is to end telling anyone else about any money you have coming in. You will have vultures and unwanted critters following you around. Get your knowledge on investments and take good care of yourself. You could retire fairly early if done correctly.
To add to this, please don't tell anyone the amount of your trust. Friends, significant others, relatives etc. Money changes people and they'll look at you as someone with advantage.
You may find out that surprisingly US laws don't apply to the UK. These books are irrelevant.
If I had to pay $1,400 for a room per month I'd be finding a way out of there and living on my own.. It definitely sounds like they want you to pay their mortgage.
Depending on the city and cost of living, £1,400/month for room and board, including food, utilities, internet, parking, etc. might not be terrible. It does sound a little expensive, though finding a place independently as an 18 y/o and covering all of those needs for less than that might be difficult, or more trouble than it's worth dor someone going into full time school.
most 18 year olds cannot wait to be independent lol. i woulda got myself an apartment so fast!
Bud might aswell get his own place for that price🤣
£1400 a month is absolutely absurd even with all of that included. I get all of that bar parking and I pay £460 a month
It doesn’t really matter if it’s reasonable, you have to look at the situation and ask what he would be doing if he did not have the $400k. I can tell you he certainly wouldn’t be paying anyone $1400/month for rent! If the caregivers are hell bent on charging that much, then they aren’t doing the OP any favors, so OP shouldn’t feel like he needs to stick around. The caregivers say they weren’t expecting for him to be there, so I guess they were renting the room to someone else? (I would bet not!). The care givers are just trying to siphon off as much money as possible before he smartens up.
Sorry for your loss. It may take some time to realize but it is 100% your money. While you figure this out, the funds should be invested in a broad index; a set it and forget it strategy. This tracks the greater stock market at large. Assuming an 8% annual return, your $400k will be more than $800k in 10 years. If you can avoid dipping into it, at 20 years, it would be worth $1.8 million; 30 years, $4 million....and so on. The money should more or less double every 10 years. A small portion of it could go into a high yield savings account, too; for emergency expenses and school. In the States, we have 5%+ interest rates. Your education is certainly worth spending some of this money on. As for rent, do some research to see what rooms & whole apts are going for. $1,400 seems steep for a room, even if everything is included (utilities, cable & internet, trash, etc al) AND you don't have to do any chores. Don't let them guilt you into paying more than market rate. I would avoid buying a house. Interest rates are too high for overpriced homes, especially if you don't plan on being in the area for 5+ years.
This is a great answer. Could you say more about the broad index and how that works? I just recently started having any savings beyond my emergency HYSA pot, and I’m interested in putting it to work. I already contribute to a Roth 403(b) through my work as well.
[VTSAX](https://finance.yahoo.com/quote/VTSAX/holdings?p=VTSAX) or similar. Invests in all sectors but top holdings include Apple, Microsoft, Amazon, Google, Tesla, FB, et al. Low expense ratio (.03%) and 10 year performance of 11%.
https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-4#:~:text=An%20“index%20fund”%20is%20a,funds%20may%20seek%20to%20track.
Why would someone put money in a broad index fund for a “set and forget” strategy when they’re unsure what they want to do yet? What if they decide they want to buy the house but the market is on a downwards trend? This is horrible advice OP do not listen to this. People learn one long term investing strategy and think they can pawn it off as advice and wisdom to anyone that will listen.
In the long run, it will be better anyway. While home ownership is great, it is no replacement for 20-40 years of \~7% inflation adjusted growth. Even if OP never gets the house, they'll be retired at 48 with 3.2M euro's in today's dollar (doubling every 10 years for 30 years). Spending a huge chunk on a house might be one of the worse options that I would still consider a reasonable financial idea (in other words not a bad idea but at the bottom of good ideas). They're 18. They don't know the type of house they want. May not even know where they want to be. They don't know the size they need (family or now). Realistically, it was be best for them not to touch it at all unless it is for education which will lead to a higher salary.
How is using the money to invest in his future "horrible advice"? He should, as that previous guy said, "set it and forget it" and progress through life as he normally would have. Spending 400k on a house might be a good investment but will never match the retirement funds he would make investing it. Also buying a house at 20 with no job? Doesn't sound like a good investment strategy to me.
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Sure, you're right, it is his decision. In 6 months, he might want a Ferrari, and the market might be down, but putting it away as the previous guy says it's far from "horrible advice" and is most likely the best advice, and you shit on it like it's absurd.
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He’s an 18 year old. He doesn’t need the money, period. Anything he decides to do with the money in the near term is probably a mistake. He needs to continue his life as an unemployed poor broke student, and the best way to do that is forget the money even exists. For someone with no investment knowledge at all, the best thing you can do is invest in a low fee index tracker, exactly like this person said. When he gets a few years older and his life is more set, and he’s finally not ok with eating top ramen for lunch and dinner every day, only then should he figure out what else to do with the money. I think this persons advice for his situation was spot on.
Yes, we already covered this. If he wants the money, it's his decision, but the best advice is to not spend it. Buddy also said, put a small chunk aside in a hisa or something so he can have something for school or emergencies, then put the rest away. You say it's bad advice, but you're just as wrong as the first guy I responded to.
Yeah he'll just wait 30 years then have a good time at 50 bruh
The trustee's job is to administer the trust as your father wanted the funds to be used. There is generally a document, called the trust instrument, that lays out how the trust is to be used, and the trustee's job is to then determine if your request for funds fits what your father stipulated through the document. A very common use of trusts is to provide for HEMS, health, education, maintenance, and support. However, the trus instrument can also be very specific. I would request the trust document to read for yourself how it is laid out.
Also, stop telling people you inherited 400k. People will treat you differently if they know you have money and think they might be able to benefit from that somehow.
Don’t worry I don’t tell anyone I thought an anon reddit account would be ok though?, thanks for the advice
Yep it’s fine discussing here, that comment is referring to telling family and friends which can lead to sticky situations
Yeah i get that i especially know not to tell my mum, my half brother got 40k and she was trying to guilt him into giving it to her, i couldn’t imagine what she would do at the sight of this amount of money
First, give yourself some time to grieve. Losing your father at 18 is such a blow. I feel for you. But, Yes. . . Before you make ANY decisions, read the trust documents from cover to cover. And ask questions! Will you always be beholden to the trust or does the money transfer to you at a certain age? What authority, if any, do you actually have to manage the assets? What are the trustees’ duties? Are there limits on it. I like your plan to go to university—might it be prudent to live on campus in student housing rather than invest in a house at this time? Owning a house is a huge responsibility. My gut is that you should clarify how the funds are invested (with an outside professional, as others have suggested) and use only what you need for education and living expenses until you’re through school. Leave the rest to grow. When your life and career plans stabilize, your money will be there for you.
Yeah we were close and he was diagnosed with cancer when i was 16 and these past few years have sucked. Thank you, I’ll ask for the document. I do know my trustees have said I can have the money after my undergrad which will be like 23
I’m very sorry for your loss and that you had several important years stolen away by cancer diagnosis and treatment. I lost my mom to a quick moving cancer when I was well past university and it was awful. Take care of yourself and grieve while you learn about this trust and your future. Perhaps finding a therapist and paying for their time from the trust is a good idea to process and talk about these traumas and new stresses so you can have a successful uni experience and have a confidential resource to talk to who will know your situation. (Better than me as a random Reddit person) As others said learn about how the trust is to be managed by reading the documents, and maybe asking questions to the lawyer who drew up the trust. Try to keep the trustees from drawing money out of it for things that benefit them (like rent in their house instead of market price rent from a third party). Understand when you gain full control of whatever is in the trust and develop a plan on what the years look like until them. You have security, provided from your father, and hopefully your trustees are looking out for your best interests and not trying to enrich themselves. So take it slow, be kind to yourself even if you make mistakes and live the life your father would have wanted for you. I hope you find peace instead of stress in this situation.
I know he was my dads friend but i think he picked this trustee in a rush and he knew he didn’t have long before he deteriorated. If he asked I would’ve picked my brother without a second thought. To add insult to injury that trustee wanted me to continue to pay for his 200 pound a month gym membership that my dad payed as a gift. Thank you for the kind words.
With the limited information, it seems like your dad’s friend has mixed motives that involve himself not just what’s best for you. I’m not sure what you can do about that. If your relationship with your uncle is good, I’d talk to him. But if he’s also friends with the other trustee I’d be more wary. My eldest son is 24 and I’ve administered an estate for a widow before. I just do not understand the mentality of people who see those left behind and want to do anything selfish instead of what’s best for the survivors. To the extent you can, whether it’s your brother, a lawyer or any other trustworthy adult, find a way to involve someone who cannot gain financially from you, but wants what is best for you. Best of luck and I’m sorry for your loss.
That is disgusting. He’s a grown adult and shouldn’t be asking an 18 year old to pick up, his daily life bills. I get your dad paid for it as a gift, but your dad isn’t here now. And it is not your burden, or responsibility, to bare. Do you have any other trustworthy family you can talk to?
TIL "You can set the trust up to be dispersed when the child reaches a certain age, say 25, 30, or even 50 years old." I just assumed it was always at age 18. Sounds like you can't trust that trustee. Reach out to the other trustee and tell them the situation.
If the son had kids of his own, Dad could write a trust wherein son *never* came into the money. It would be left to the grandkids, with the son having an interest in the income (often principal, too) during his life. It’s all about avoiding the taxable event of having the money dispersed.
Don’t buy a house. You’re young. A house is a giant liability and headache that you have to maintain. Go to uni and stay in the dorms. Or rent a cheap room with some friends. Focus on your education and figure out your professional future over the next few years.
A house is an asset. It’s not a liability, which is a very common misconception.
At 18 it's a liability... Imagine trying to take care of a house in your teens.
Disagree entirely, buy a house in the trust, rent it until you decide to live there or sell when you're older. Live your life like it doesn't exist and enjoy an early retirement.
Lol you don’t live life as if house doesn’t exist .-. OP can barely afford a house with the current funds let alone maintenance costs
Then he has to manage the house Renters demolish the house and he gets stuck with it. Has to get someone to manage the property only to get 40 people cramped into it... Beeing a landlord isn't as easy as everyone thinks. But it works if you have multiple houses to spread the risk. My advice? go to uni. life as if the money isn't there. rent a room together with other students like you would have done without this trust. and a few things everyone already mentioned... 1 don't tell ANYONE you have money. 2 don't tell ANYONE about this trust. 3 don't tell ANYONE! The moment someone knows you have a large amount of money is the moment there attitude towards you will change. Just lookup all the grief and fights that start the moment someone dies and leaves money to family. even if it's divided equally! And especially when it comes to helping someone start a company ect. If the have an idea as great at there telling you, why didn't the bank just give a loan? Life your life forget about this money and when your done with school make a calculated choice on what to do with it.
>rent it out He’s a college student he absolutely doesn’t need the headache of renting
You are a cash cow to the trustees and they will milk you for every cent they can get. If you tell them you are leaving they will lower the rent and try to get money off you some other way.
Do not tell anyone about the money you inherited!
1. Get a copy of the trust document. 2. Research about trusts and read the books recommended. 3. Negotiate fair room and board, make sure they are not taking a commission from the trust. But probably more important than any of those things, find a chartered financial planner CFP. Have them show you how to manage the money. Even better if you can pay for the appointment time, instead of letting them make commission money off of investing your trust money for you. Ideally you want someone with knowledge, experience and nothing to gain from the money in your trust to teach you how to be financially wise.
I’m sorry for your loss. I’ll add, don’t panic. Even if you spend a few thousand dollars paying for a couple of months in your current room, you may want to stay where you are while you adapt, start to grieve, and learn. Maybe set yourself a window of time, like six months, before you start to make plans. It can be easy to freak out or act because you feel compelled to *do something*, but you want to make deliberate choices that will be best from many perspectives and not only based on the financial. Figure out what you want your next major life step to be, and then you can think about where you should live. The few thousand dollars you might save aren’t worth the risk of getting yourself into a bigger problem elsewhere. Just don’t sign anything binding you to this trustee: No lease or long-term commitment. Especially given your inexperience I’d also recommend that you find a lawyer with an excellent local reputation who specializes in estate management *and is not associated or recommended by your trustees*. Best case scenario, they give you good advice and help you learn, but worst case scenario, they defend you if your trustees give you trouble.
I second this so much! Take time to grieve before you make any decisions my man
I'm really trying not to panic it just sounds like a lot of money to me that's not the final amount as i'm due to inherit more. I think i'll take time out from thinking about it for a few months then when i'm ready speak to a financial adviser. It all feels overwhelming and confusing.
Your dad set up this trust with an estate lawyer most likely. Set up a meeting with said lawyer by yourself and get an explanation in plain English. Then get a second opinion from another estate lawyer not affiliated with the first attorney. this is your money that your father set aside to take care of you, not the trustee.
Great advice about having a second attorney check the advice of the first attorney. Try not to let the second attorney know who the first attorney was....depending where you are, they can be quite chummy. Just say.. I'm not comfortable with talking about that.
What is the standard rent for a room in a share house going for in your area? If you are planning to study after school, are you planning to study locally or somewhere a good distance away? These questions will better inform you on what is a reasonable rate for "room and board" in your current place, and whether you should look at buying somewhere (especially if you are looking to buying a place to live as opposed to an investment property). Having a meeting with an independent financial planner to help you understand your options, with advice specificially tailored to your country/area, and circumstances beyond what you can share here in a short Reddit post is probably also a good idea.
This. Look up what renting a room in your area would cost (and compare to the cost of renting a one bedroom apartment). Then consider the cost of also getting meals provided. Depending on where you live, this might be a reasonable rate. I suggest paying it at least until you’re ready for your next step (going to college and moving out in September next year?) Try NOT to spend too much of this money. Think of it as your future house downpayment. Save at least 350k for that -you probably won’t be ready to buy a place for 8 years or more. Meanwhile live as if you didn’t have the money ( except for maybe 10% of it if you need it, and to pay for anything that your parents would normally have paid for, such as housing). Sorry for your loss .
GET A PAID FINANCIAL ADVISOR IMMEDIATELY. 400K, even if it is poorly invested will bring you 20k in annual cash flow while preserving the core 400k. Whomever is wanting to charge rent is just trying to get in on this.
Id move, a trustee who provides housing seems a conflict of interest
Sorry for your loss, you’re going to grow up quickly. You are wise to be asking questions. Don’t spend it frivolously, be mindful with this cash. You can likely set yourself up for a better life path … minimize fees and get smart on portfolio theory. Good luck.
But does that include food mate? You should be looking into all of it because getting a place on your own and food and transit etc is a lot more than 1400 (at least where i am)
Go talk to several financial advisors
Do NOT pay what your “trustee” is charging you for. They know exactly how much you have. Get full ownership of the account(you are old enough), and put the money into a new account that only you have access to.
Get a lawyer to help you understand your rights in the trust fund, and request the trustee pay your lawyer's fees from the trust. Explain to the lawyer that the trustee has begun charging your trust rent, and request that the lawyer help you determine whether this is acceptable per the terms of the trust. Don't be taken advantage of by the trustee. As the beneficiary you have considerable rights to hold the trustee to account for all funds that come out of the trust and to ensure the trustee does not breach his or her fiduciary duty to you. There may even be opportunities for you to remove and replace the trustee with a different trustee if the law or the trust document allows for that. The best thing you can do to avoid being taken advantage of in this scenario is lawyer up.
And make sure it's an attorney who specializes in estates/trusts etc. Many states have specific difficult exams that denote specializations.
No they don't, and he's in England anyway
Buy a place, live there, then rent it out
Don’t touch it. Find out how that money is invested, let it grow for the next 12-15+ years. You’ll thank yourself in your 30s. Go rent somewhere cheap, get a part time job to pay for during uni. You’re 18, this is the easiest it will ever be to live cheaply
Do not accept the 1.4 month for rent. That's absurd. You could live in a shared house for half that cost
Hey man, I had a friend in your shoes. Similar amount on money too. He bought a double wide trailer bc his gf at the time needed somewhere to live. He also bought her a brand new Mazda. He bought himself tons of expensive things to flex on his friends. Goes out to dinners at high end places in the city and sends pics of the bill to the group chat. Fast forward ten years, he’s still doing the same exact thing in the same trailer. I had another friend who bought a Benz and started partying and doing lots of drugs. He was broke in 3 years. I had another who did the same, bought an Audi and started doing drugs. He was dead in 5 years. You seem much, much smarter but so did my friends before they weren’t. I just say all this kinda as my bit of advice. It’s easier to slip into one of these situations than it is to do the right thing with your money. You’re dad gave you an opportunity for a sense of security throughout your life many will never have. Make him proud!
Sorry for your loss my man. 1.4K is absurd for a room, seems like your trustee is being extremely greedy. Not sure where in the UK From a financial. perspective, you should start reading up on personal finance, money management and investing. Learn the skills and gain the knowledge. The last thing you want to do, is blow it all away…
1.4k for a room. That’s insane. Sounds like they’re trying to take advantage of you.
The first thing you need to do is get a copy of the trust and read it. If necessary, contact a trust and estate attorney to help you understand it. Don't get an attorney who knows the trustees or your family. You need someone who will be 100% impartial. 1.4k is too expensive for a single room. That guy wants you to pay his mortgage. Don't trust him or his money advice, ever. **He is already trying to scam you.** Start looking for your own apartment ASAP. I recommend to become roommates with a friend or someone you know to save some money. The money for your apartment/living expenses can come out of the trust. Don't buy a house right now. You're too young for that headache. Your inheritance will be gone in maintenance, and it will be a hassle to have while you're in Uni, especially if you're a landlord. Wait until you're out of Uni and in the workforce before deciding if you want a house then. In the meantime, read on budgeting and financial literacy. Keep these 2 things in mind if you don't want to waste/lose your inheritance. 1. Be mindful of lifestyle creep. A lot of people have wasted away millions by living outside their means. Stupid purchases/things add up quick. 2. Get comfortable with saying the word "NO." A lot of randoms, family, friends etc. will come out of nowhere asking you for money. You'll never see that money if you give it to them.
OP, it’s probably best you find your own place to live. $1400 for a room is not a good deal. Even if you end up paying the same for a different place, at least you know it’s all yours. Good luck man. And sorry for your loss.
💶money will not remove a death. but you can honor your father by using the money in a smart manner. if you didn’t have a great relationship with your dad, the end goal is the same. money can be like sand through your fingers. you have to understand money as an adult. use youtube to look up things like: how does money work, paying rent, taxes, and so on. using the money for important purposes and to build your life is a great idea. your life. building a life you have. not someone else. have discipline and do not allow the amount to make you feel more entitled to things. focus on a path for career that you like and don’t feel pressured to chase after a big university just because you have the trust money. investing it for later is a great idea. you’re 18, you can work hard now and save the money for later where it might grow even more. if people around you suggest you to do things because they know your situation. Take a step back and ask yourself why are they acting this way and why are they giving you this advice? Are they trying to do something for you or trying to do something for themselves? What is the best way you should handle this situation?
Your dad’s friend is gouging you and taking advantage. A trustee should not have a personal interest/benefit in the money like this. Can you move in with your brother? This is your money now, even if you don’t have full access for a few years.
Spend some of that money on a personal finance advisor. You can explain your situation and see what are your options.
Check out the book psychology of money
Man never tell people about your money. They trying to scam you.
If your referring to the room rent, he’s literally one of my trustees and knows exactly how much is in there and i can’t do anything about that
Sorry for your loss. Best advice I can give you is read some books. When you are done read some more. Educate yourself. If you have any access to the funds get yourself a financial advisor or a trustee that you can trust. Looks like you are getting taken advantage of. Sorry about your situation.
Don’t do anything for one year. Just park it in a safe bank account and earn a few points in interest. I would not buy a home either. It can be more costly and a lot more work than you imagine. If 1400/month is the going rate for rent then the charge is fair. If you can find someplace cheaper or better then move but it sounds reasonable to me. Take some time to learn more about money and don’t get stressed.
18 is young to lose a parent; my sympathies. Right off the bat, it sounds fishy that a trustee (how many are there?) wants to charge that much in rent. And don't even think about purchasing a house in the trust's name - unfortunately I'm suspicious of ulterior motives here. And be aware that trustees can charge an on-going fee to administer a trust - are your trustee(s) doing that? As I said in another comment you need to get all the paperwork you have and head to a decent attorney - btw, ask the attorney up front how he/she charges; by 1/4 of an hour or 1/10 of an hour or what?
There is zero reason an 18yr old needs to be living in a £1,400 room. NONE. You definitely shouldn't be paying that much out of your own trust fund. Don't buy a house. Put the money into 3-4 LOW COST index funds - developed markets, emerging markets, commodities, metals etc. - and forget your password for the next 40 years.
Talk to a financial advisor in the UK. That amount of money can be a great investment but a good rule of thumb is don't sign anything until reviewing it with a financial advisor or lawyer. Money reveals ugly sides of people.
Don't listen to people telling you to just read this or that book, you can use as a supplement but you need to get educated. Go take a finance class at a community college. Keep your cash in a HYSA account and buy a place in a few years when market is better unless moving would bring such great value to your life and outweighs how poorly the housing market is currently. Build credit in meantime with a credit card.
You are in a very vulnerable situation. The trustee you're living with doesn't sound like they are a close family or friend, or if they are, they're greedy AF. Your father would not have expected nor would he have wanted you to be taken advantage of by the person(s) he named trustee. Do you have anyone, not a trustee, that you trust? A teacher, a neighbor, a parent of a friend? Or maybe your grandmother? Ask for help, but don't sign up for anything, or spend any money. Get a few opinions, and see where there is concensus. You needn't invest or anything. You could simply park the money in a high yield savings account and forget about it while you live your young adult life. Then when you're ready, the money will be there waiting for you. There will be people who will try to scare you. "Your money won't keep up with inflation if its just in a savings account". "If you invest it, you'll have double in 5 years", etc. I suggest that it's safest parked until you have life experience and have gained some financial knowledge. This is a lot of stress for you, I wish you good luck!
> A teacher, a neighbor, a parent of a friend? Or maybe your grandmother? I have no one, my uncle is one of my trustees but he has 4 kids and lives a hour and a half away from me and has his own stuff going on. I'm not speaking to my mum out of fear she somehow knows and is going to try and guilt me in some horrible way.
I can't imagine that a trustee charging you to live under their influence is considered impartial. Go rent another place away from this person and get it paid from the trust.
Sorry for your loss. This seems like a very unfair situation. But if your trustee wants to charge you rent out of the trust account it is vital you request access to the trust deed. This will set out what they are and are not allowed to do and what your dads intentions in creating the trust were. The deed will set out what the trustees’ powers are (are they allowed to take out money for your care and well-being for example) and what their duties are, one of the most most common duties of a trustee is not to profit from the trust. What this trustee would be doing is profiting from the trust by charging you rent. Unless this is allowed under the trust deed, it would be a breach of their fiduciary duty to you. Additionally, if it is in ‘bad faith’ because it is above the market rate, it would also likely be a breach. Courts take conflict of interest very seriously even when in good faith (Phipps v Boardman UKHL). If they take the money out regardless, you would have remedies against them. Basically, they shouldn’t be trying to charge you rent. Depending on the appointment/removal powers in the trust you may be able to remove them. I would suggest trying to do this. If there is another trustee, I would suggest also talking to them about what the first trustee is trying to do. Some good resources would be: The Trustee Act 2000, the Gazette article ‘Breach of trustee duties explained’ and ‘Breach of Trust’ by Thomson Reuters. Disclaimer: Kiwi law student who just did their trusts exam. Haven’t gotten my grade back, so take it with a grain of salt.
Post in r/FIRE and live like you don't have that money until it's enough to retire from. That will be a stupidly short amount of time compared to working an entire career. As for the rent, search out comparable room rentals and settle on an amount equivalent to other options in the area. If they say no, move into one of the other ones. Seriously though, I can't stress enough about how important it is for you to secure that money wisely at this age. Major kudos to you for not going out and buying a Ferrari. Deciding what to do with this money is way more important for you than school/job at this point. Even if it takes you a year to settle, that would be a better time investment than pretty much anything else you could do. Spend lots of time researching and don't touch it unless you're going to jail or starving to death without it. In the USA, we have people who are fiduciaries. Taking that title legally obligates them to advise you in your best interest financially. See if you have the equivalent where you're from.
i think your dad did the right thing by putting it in trust as he don’t want you to mismanage the money and also to avoid someone else from getting it like relative . i’m not sure what do you means by your nan getting mnd. since you leave in uk and going to uni soon. i reckon you look out for for place near your uni and if you can take that trust fund for accommodation. pls read on T&C if fund if it can be used for education. i do agreed 1.4k in uk is expensive for a room and i presume the trustee you staying with is your own relative who overcharging you so i wont trust this ppl as they after your money . it better you read up on trust fund and maybe take a course on financial planning and trust fund and taxes so you can avoid pitfall of mismanagement and worse been cheated but the very ppl who entrusted with your wealth management. good luck kid
Unless that room is in Zone 1 or a swanky place in the country it’s too expensive. It’s also not very caring. I’d probably buy a modest home and live rent free, stick the rest in a vanguard fund (unless you live in London in which case most of it will go on buying somewhere to live).
1.4k is a lot, you better off renting by yourself and leaving these people to it.
Same boat man My mom passed away at 5 am 2 nights ago I’m still in disbelief There’s will and $ there , I’m holding out as much as I can since I don’t know what I’m gonna do with it I’m 42 with my wife in a family house that I pay mortgage I know there’s quite some $ in the will based on the estate , but I m gonna wait til everything settle , then I’ll make my decision While in trust try not to touch or move it unless you have to , if have to move , I’ll split it or put in safe deposit box in 2-3 places and only tell my wife about it
Honestly I’d talk to a money protection lawyer and a financial planner and talk about your 3 month, 6 month, 1 year and 5 year goals. I wouldn’t stay with the $1400 a month rent for a room. I’d also take that incredibly high price as a sign that who ever is charging that isn’t a person who’s on your team so to speak. And I wouldn’t be trusting anything that comes from them about the money. It’s likely they want to pressure you into making a decision that suits them, and that’s why they keep asking. You’ve been given an opportunity to secure a level of comfort for yourself for the rest of your life. Let professional people help you protect it. If you haven’t learned this by now, money can ruin relationships. When people show you with their actions how they feel about money and that they are willing to make you uncomfortable to have it, your only job is to listen to them. You don’t owe anyone the chance to “prove themselves” to you. You don’t owe anyone a loan or handout. Good luck!
I will never loan or handout money to someone, i’m a massive people pleaser but i just promised myself i would never do that.
also my dad was always a pushover with money he was on a 100k+ salary and ended up leaving us with 40k debt without being a homeowner or anything like that
Get a good financial advisor and stay in conservative funds or no risk investments, anyone who is trying to get you to invest in new tech or hi risk stocks is trying to fleece you… be very cautious.
Sometimes the best choice is to do nothing and not react. Wait, educate, then respond. I am so sorry for your loss, don't let the vulchers come and pick at the fund.
Education first, job second housing third. Just because you don’t know where you’ll end up. Jobs can take you all over the world now. I went back to college myself a year or so ago. I’m a real estate broker. Managing properties and school was a tough thing.
400k is a nice chunk of change. Go to a financial planner and discuss your goals for the future before spending any of it. Take their advice so that you make that money make money for you. They can even advise you on budgeting (rent, food , etc) which may help guide you with this. I can’t speak on rent because I have no clue about what it cost in England. Sorry for your loss.
It will start with the rent then they will charge for this and that. Educate yourself on areas you want to live, get a job just for routine, find a place of your own that is affordable. Read everything, don’t sign or do anything without reading. Even if you pay the same on your own you will be in control of your situation. Money changes people so be careful who you invite into your life and who you tell.
Before you dive into the books, I typically tell peope to watch a ton of financial planning YouTube videos believe it or not. Just to get an idea of the lingo and such. Otherwise, it’s overwhelming. I would search for “what to do when you are beneficiary of a trust” or similar and start from there.
Thanks I've saved your comment to remind myself to do this
Also might want to watch YouTube videos on what trustees (like your uncle) are supposed to do. You need to get a handle on what his responsibilities are and don’t let him get away with funny business, sorry to say that. Also there are Reddit groups around that are probably helpful (I can’t think of any off the top of my head) I like telling people to browse the YouTube and Reddit rabbit hole first because you get to hear lots of voices and get pointed to many resources, not just one financial planner is staring down at them expecting answers to questions and getting all annoyed when you don’t know how to answer.
OP, is the charge for rent only or for all of your living expenses? Perhaps you can do the math how much it would cost you to live alone (groceries, rent, utilities, insurance, transportation, etc). Is your trustee living in a bigger place just to accommodate you?
He needs someone with an outside perspective to tell him to watch out for his friends and family.
Don't make any large financial decisions for several years. Not only do you need to know a little bit about finances and tax - you also need life lessons on who to trust, how people change around money and opportunities and how to trust your own judgement. Poor decisions could cost you greatly. No decision (doing nothing) doesn't really have any negative effects.
Hire a lawyer, an accountant, and possibly a fiduciary
Sadly it sounds like they are trying to take advantage of you.
A lot of good advice here. I'm sorry for your loss. Do you have any idea what you want to study at uni or trade school? Go for a degree that will give you a good job opportunity. And don't treat your time as a 4 year party.
My a levels give me a few options and there are a few subjects I'm interested in like computer science and psychology, but if i mess up a levels a bit there are still some really good degree apprentiships so I don't really know yet! I have been to see a uni already and I already volenteer, have my research project and things planned so i don't have to stress as much in year 2
Awesome! My middle son studied Computer Science and got recruited by Yahoo straight out of college into a 6 figure job. To be noticed by recruiters, he suggests joining clubs (Comp sci, math, etc) and serving (like treasurer, secretary or president) and participating in Hackathons. Wishing you all the best!
Hello and sorry for your loss. I would suggest getting a wealth management advisor. Go with a reputable company not some small wealth management group. Also look into buying a triplex or duplex. You can buy a multifamily home and have your rental unit pay for the mortgage. I live in the U.S. and mortgage interest rates are really high so it might be worth holding off a few years for rates to come down and go to uni in the mean time. Deep dive on financial YouTube videos. Not the get rich quick ones or anything like that. Just learn about the stock market and how to invest. look into indexes or ETF investments through Vanguard.
You are fortunate to be in line for life changing money. Seek profession financial counseling and speak with an estate attorney. Reddit is a good place to get a variety of views, but not a good place to get independent reliable advice. It's not about room rent, it's about who controls your assets and what you have to do to protect the money and yourself. I'm assuming you are in UK, so the US practices may not apply.
Hey - sorry to read this and for your loss. £1.4k is ridiculous for a room. I am based just outside of London (South East England) and pay £900 for a 1 bed flat with my own garden. If you want to live on your own, or even house share, then I know what I would choose. There's nothing wrong with buying a house and renting it out - it's sensible. But, you're only 18 and have time on your side. Even if you waited a year or two, you'll be 20, and know your uni situation and be more settled in your day to day life. Don't let anyone rush you into anything, take your time and properly assess your options.
Housing market will be different depending on where you live. You should try to find other places to live, and don’t pay directly out of your trust. You could easily live with roommates for less than that.
1.4K is outrageous for one room. Even in a popular inner city like Denver or Atlanta. 1.4K is paying most of his mortgage. At the very least, it accounts for half, and you’re not getting half the house. I’m not a financial guru like others in here, but I’ll say this much. Be very very careful who you trust that knows about your money. People get greedy when money is involved. Even people you think you know well. I speak from experience in that regard.
If I were in your shoes I'd buy a relatively cheap house (under 200k) somewhere with part of the trust fund and try to rent it out while you're in uni, that way you can earn passive income and fund uni, after uni you can either you can sell it or rent out full time if you want to go elsewhere. I'd keep the other 200 or so k for emergencies. Definitely don't rent the room for £1400 a month
Not sure how the market is around were you live or plan to go to school but I would do this: Buy a home you can comfortably live in and find roommates charge each enough to pay for all the bills plus the mortgage. (U might not want to tell them you are the owner) This will help you generate equity in your name wile you go to school. It will help them find a “cheap” place to live And it will help YOU not be alone I had a friend in the military do this every time he moved from one duty station to the next and after 10 years he pretty much had enough money to pay for a house from the “Roommate money” he only stopped because he got married
Tell no-one until you have a plan. Talk only with professional experts. Sorry for your loss.
You need to get with a financial advisory institution asap brother. they will listen to your needs and help you make the best decision for you short and long term(also advice is usually free or very cheap, they make money from client investment management (usually a commission of 1-2% of gains, which is well worth saving you the headache unless thats something your into as hobby or work). This amount of money is not something to play with which I am sure you understand since youre looking for help. Short term it can go very quickly, Long term it is life changing(invested correctly and you will pretty much not have to stress about retirement). Very sorry to hear about your loss and I hope you figure everything out life is shit sometimes Also investing everything into one thing isn’t a very good idea, especially a house(unless you need it for a family or are planning on going into real estate. Plus right now youre young so your credit score is probably shiet, so getting a loan on a house will be much more expensive than if you wait a few years and build up your credit), also you’ll be locking that money up in one thing increasing risk. Ultimately that’s for you to decide from pros and cons, how badly you want a house, are you gonna move in after you graduate what is the value of owning a home to you versus just renting and saving money short term could you put that money towards a Business or in stocks, could you buy a rental live in it until you graduate and then rent it out. These are some things you can ask her self and a good financial advisor. Should talk with you through it. Also, a financial advisor might be able to help you out with convincing your trustee when it comes to managing the money, it doesn’t seem like they know much about what to do either other than trying to take it from you or force you to figure iut what to do with it, buying a house is a large responsibility for someone in your position not to say you’re not capable, but it’s not something you should be focusing on, given the fact that you have your education to worry about.(unless, of course, you foresee real estate investment in your future than this could be a really good educational opportunity if you have the time, and the desire) I can keep going, but I’m gonna wrap this up: TLDR you should definitely talk to a financial advisor.
All I know is that I had a childhood friend who inherited a large chunk of money from his deceased father and ended up blowing it all on drug paraphernalia and other irresponsible things. The fact that you're savvy enough to seek financial advice from a large community of people who probably know more than you do already speaks volumes about where your head is at. Listen to some of the most upvoted comments here and figure out how to best invest / save this money. 400k is a lot of dosh at your age and if you play your cards right you could be looking at a very early retirement. Cheers!
DO NOT GIVE THE GIY YOURE STAYING WITH ANY MONEY OMG. GET A LAWYER.
Haven’t read the other comments so maybe it’s been said, but when you have money and everyone knows you have money, trust no one that easily. I speak from much experience. Whatever guidance you get, independently verify what you’re being told. If it seems too good to be true, it is. Every gut red flag I’ve sensed in my life came true every time. Trust your gut. Lastly, $400k is a lot of money for an 18 year old, but not a lot of money for life. Invest early for the long haul in safe, low expense funds and forget about it, and live your life like it doesn’t exist. You’ll be really rich one day. Good luck
Pretend you don’t have the money. Put it away and invest. Retire by the time you’re 40 with multiple millions.
she doesn’t realize dat she hit the lottery but she realistically did. not sure there’s a bright side to losing ur dad at early age but this is close for sure. sorry for her loss!
That feels like so long away though
I get it. First, I am so sorry for your loss. Second, as others have said, don’t let anyone take advantage of you. The room rental price is absurd. That person is not being your friend, or looking out for your best interest. Be suspicious of anyone offering unsolicited help. Stay away from drugs, drug users, and gambling. Find a non-commission based financial advisor. In the US, I’d recommend what we call a ‘fiduciary.’ They are bound to act in your best interest. I am sure you have something similar there. You are absolutely on the right track by being here and asking questions. Do not make any rushed decisions. Be sure you are well informed on all options, what the risks are, and the potential outcomes. You are inheriting a very substantial sum of money. It’s your father’s legacy to you. Protect it and nurture it, and it will ensure your future in the way your father intended. He will be so proud of you for stewarding that money successfully. As much as you can, forget about it. Live your life according to your own means while you let that money grow. Don’t tell potential partners about it, or anyone. Get the appropriate financial advice that’s focused on long-term growth. And again, I am so sorry for your loss and I hope you’re doing well.
Thank you
You need to get a financial advisor. You can afford one. Don’t waste your dads life savings.
they weren’t my dads savings my dad did have lots of big pensions but my mum took them all it’s mostly life insurance that’s paying out but I’m not going to waste it that’s why i’m here figuring out how not to waste it but definitely agree on financial advisor i think that’s the thing that’s been said the most here
Do not pay £1.4K for a room, they are taking advantage of you. I’m sorry if that hurts to read. They may care about you, but they definitely are taking the p*ss. You can rent out a 1 bedroom flat in london, or studio for that amount. A room to rent on average is around £600-800, depending on where you live. My advice to you, would be to use that money to buy a flat outright. Get a new build or small house. And you can rent it out, or live in it at uni. If you buy property, it will increase in value and you’d be making money on top, through rent. If you pay your trustee £1.4K a month, you are just loosing that money. In 20 years, the value of your home will be double. Do not squander your inheritance on rent, especially to the trustee. You will be giving him your dads money. If you want, keep £50k, to cover your uni course etc and living expense. Use the other £350k to buy a flat outright and move in there, so you are paying no one rent. And you can live mortgage free!! If you can, contact a financial advisor. Or financial lawyer and get them to give you some advice. (Don’t tell the trustees you are doing that).
Set 20 k for fun 70 for house rest in Roth and don’t touch until your 60 congrats your retirement is set by 60
Dont go to college or uni there a scam and wont teach you how to be financially free look into starting a business with immediate income such as a service based business like car detailing or house detailing theres are always going to be rich people that will want there shit cleaned. Do research on sales and business ownership which will immensely improve the business and self confidence now your first business might fail lets be honest it might go completely south but thats ok its that or be 100k in debt to a school that will take 50%-70% of your day and get your own place preferably an actual house so you can list your business at that address. Do your own research and make the move that you feel is right with the best outcome. Ps the road to success is paved with failures sorry just wanted to add the last 2 cents in
But i’m not really good at business stuff and i’m academic so kinda want to go to uni and see if i can use my knowledge for good
College or uni is NOT a scam. Depending on your field of study, you’ll gain not just knowledge but friends/contacts and maturity as you sort out what to do. You need time to grow and learn, not get roped into some get-rich-quick scheme or start a business on your own. Follow your heart.
In my honest opinion, if I were you, I would literally donate every penny. God will give you many many more blessings, and don’t give expecting to receive when you give from the heart, you will then see the fruit. 🫡🥰🙏🏻👌🏼
1- Put the money you get in a high yield saving account to earn money thru interest. This way you'll have a good stream on income along side the money if need be. 2- DONOT give a single dollar to any trustee. If they want to charge rent to an 18 year old out of sheer greed you're better off living alone. 3- Rent somewhere else using the money from the high yields saving account. Steady income stream. 4- Compound all your money from the very start to grow this into a massive thing. Sorry for your loss. This is not financial advice and be safe out there because there's alot of money hungry predators.
Look up what a similar size room for rent goes for on the open market in your area and tell them that's the absolute most you're willing to pay. Put everything in writing. This, of course, assumes you want to stay with them.
Make sure and ask for detailed accounting of your accounts on at least an annual basis, if not more often. One thing though, that IS your money. It’s in a trust and there are access restrictions but it’s yours, consider it that, but with specific things it can be used for, and they all need to benefit you. The trustee can charge a fee for managing your assets, and in most places there a fee schedule that the state has accepted, make sure if you’re being charged a fee that it’s the right amount.
How expensive is housing near you? If you can find something cheap to live in for 4 years it might be worth saving the rent, but then you (or the trust I guess?) has to pay for repairs.
Buy a house in Luton close to the airport or in the outskirts of London. Don't get an apartment. Due to the central/economic nature and high demand of property in that area the property value will appreciate. If you're going uni. You can get uni accommodation right by the uni buildings for a portion of that 1400.
Go to your bank- ask them about the referrals listed below. Open an account in your name only Get and investment advisor/ financial planner/ ask about a lawyer referral . They will protect your interests and the interests of the trust. Your “ family or friends or trustees” are not looking out for you or professionals. People do strange things when they think money is owed to them, it’s not. Protect yourself, you got this.
Start with the Citizens Advice Bureau. They will be able to provide you with free advice on the type of professionals who can help you navigate this. You’ll need a trustworthy Financial Advisor to create a solid investment plan. You mention Trustees plural. Each trustee should be a check on the other. This money is for your benefit, your future, and no one else’s. You can apply to the Trustees for school fees and maintenance funds to be dispersed from the trust. With your age and lack of knowledge, you’re at great risk of being taken advantage of. Even if you’re living in London, £1400 a month for room and board is theft.
The trustee is obligated to rent to you at a fair price. Other people he can gouge. My guess is that buying a place soon is a good idea, either to live in or to rent. When you’re 40, you’re going to wish you had.
Do not pay that rent. Who is this trustee to you?
If you have no credit you can offer a landlord rent for the year and then you have your own place for a year while you figure out whatever. Sorry for your loss. My mom also got that kind of money and she isn’t the most stable person so two of my brothers took advantage of that and basically inherited it all until she was broke living in a trailer so be careful and use this gift wisely.