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To ask what to with inheritance?

(16 Posts)
Inheritence101 Fri 27-Oct-17 21:46:18

A couple of years ago a relative left a number of my family a property in another country. My stake is small, say, 15%. It has tenants, good ones, pays for its own upkeep and I get between £200-400 per year from it.

It's been mentioned that some family would like to think about selling as the current tenants are keen to buy it. I don't particularly think I want to, it's not worth tons (my share would probably be around 15k but that's before any fees, I have no idea what they might be) and I like the idea of having something in bricks and mortar for the future but although I have a decent paying job, I rent where we live now and there's no way I could afford to buy them out. A mortgage might be paid with the rent but then there's the landlord tax payable there as well as the agent's fees and if there are any issues I'd have to pay out of my own pocket and I don't think it would be doable. So if it comes to life, I'll need to agree to a sale.

But I'm terrified of having that money. I don't want it, I'm scared it'll be pissed away easily on a holiday (not had even a donestic one in years) and a small car (not had one for a looooong time and though not a necessity, would come in quite handy-i don't drive, dh does though). Dh's eyes lit up when I mentioned it, he thinks it's a great idea and doesn't back keeping the house at all when the money could do us good now. I'm thinking it could do the dc good somewhere down the line.

The other issue is that I never declared it. I had no idea about anything like that at the time but now I'm a bit wiser I think I know better and that I should've declared it even though it's a very small income? Feel free to blast me for that, it's my own fault, I know. So I want it to be legit (if it's not, which I don't think it is), but I'm thinking I'm probably worrying about nothing anyway as I'll probably not see any of the money if I have some sort of fine to pay.

I think my question is aibu to worry about having money? I've never had that kind of money growing up or even now and it just feels like a burden. Am I just meant to keep it growing interest or enjoy it, or am I worrying over nothing because I'm right and it'll be taken away in fines or something anyway?

Oysterbabe Fri 27-Oct-17 21:51:49

Put it towards a deposit on buying your own house.

Inheritence101 Fri 27-Oct-17 21:55:54

Oyster thanks, that's quite obvious so I'm not sure why I didn't think of it, but I didn't. We love the one we're in, it's HA but the prices here are stupidly high, somewhere around £300k so I'm still not sure we'd get a mortgage on it but it's worth looking into.

hendricksyousay Fri 27-Oct-17 22:01:01

Put it into a deposit for a flat and get a mortgage and rent it out . Therefore you will have some property . Although I’m not sure you are allowed to do that if you are in HA .

Smarshian Fri 27-Oct-17 22:03:55

Help to buy scheme will lend you 20% of a property value if you put down 5% (about 15k for a 300k property) an dthen you'd need to get a mortgage for the rest. Obviously there are some eligibility criteria but well worth a look and then you would have your own bricks and mortar!

Rebeccaslicker Fri 27-Oct-17 22:04:36

Give it to me? I'm a great investment ;)

Seriously though, if you're worried about spending it, why not have a look at some ideas on some money specialist websites? Bricks and mortar is a great idea if you can get somewhere that will wash its face on rent and if it won't mess up your own situation. Otherwise you could look at shares or even just locking it away in an account that needs 90 days' notice to withdraw until you are ready for it. Knowing you have that security blanket might feel good!

FlouncyDoves Fri 27-Oct-17 22:08:59

Did you say you’re in a council house and not declaring this income?

Darthvadersmuuuum Fri 27-Oct-17 22:13:33

Ffs Flouncy, living in a housing association property doesn't necessary mean claiming benefits.

PrancingQueen Fri 27-Oct-17 22:14:07

It’s £200-£400 per year Flouncy, not £20,000.

Inheritence101 Fri 27-Oct-17 22:14:16

Flouncy it's HA, and I was already in it when this happend so got it legitimately if that's what you're getting at. Owning part of a house I can't live in doesn't affect my current housing, that much I do know.

shaggedthruahedgebackwards Fri 27-Oct-17 22:15:20

I would definitely sell. Owning a property with others gets complicated. Agree with a PP that using the money as a deposit for a property to live in makes sense if you can make it work.

I have no idea if capital gains tax will be payable. Hopefully someone else can advise.

Don't piss it away whatever you do. Put the money in a separate account until you've decided what to do with it.

DontKnowWhatToDo123 Fri 27-Oct-17 22:16:42

Think of it this way....if you only get £200-400 a year it would take 37-75 years to "earn" the £15,000

And by getting it in dribs and drabs it's more likely to be wasted on small things...like been used for shopping or an mot on a car, really I doubt you really see any benefit of £17-33 a month.

....a big lump is more likely to make you think of how to spend it well....and will make a big difference, you could always buy a flat/house in a different area to rent out. (our area you can buy houses for £60,000 and rent out for £425 a month!!!)

Inheritence101 Fri 27-Oct-17 22:16:54

And no, no benefits since I started earning over the threshhold to claim any.

mintbiscuit Fri 27-Oct-17 22:17:07

Put it in a pension. The government will top it up by 20%. (Free money) You can't piss it away then.

HermionesRightHook Fri 27-Oct-17 22:33:01

That's a very good idea mintbiscuit, especially if you don't have much of a pension now OP.

If you're working, you're probably in a pension and may be able to get employer matching of extra contributions, too - if so, you could put the inheritance into a savings account. Set up the extra contributions, and take that extra pay you're losing each month out of it to top up your monthly income back to what it is now. That way you're maximising the money by both saving it in a pension, and so not paying tax on it, AND getting extra tax-free pay from your employer.

Inheritence101 Fri 27-Oct-17 22:59:33

Dontknowwhattodo that's true, it would take that long which is why it feels like a comfy thing I guess, I've so far used it to support Christmas/new year when things can be a bit low.

Mintbiscuit and Hermiones, pension is a good one too. I do work and have a pension through that.

Thank you everyone, your suggestions make it seem more sensible.

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