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To ask how you would spend inheritance?

(96 Posts)
Username9876547 Sun 20-May-18 18:15:38

If you inherited a good chunk of money, say £100-£150k from a relative, how would you spend it? If you still had a mortgage to pay, would this be your first priority? DH is due inheritance and we were considering purchasing a new car to replace his ageing Ford and perhaps having a once in a lifetime holiday for us and the DC, but it feels slightly wrong to spend money that a relative has saved on something so frivolous. WWYD?

Jenijena Sun 20-May-18 18:16:39

With that much money you could do the car, holiday, and still have a hefty sum to be grown up and serious with. Do something to remember your relative with, and then be sensible?

bigfishlittlefishtupperwarebox Sun 20-May-18 18:17:22

Surely though even a reasonable car and a great holiday wouldn't make too much of a dint in that size of inheritance? A car isn't really frivolous, and I would have thought most people would be happy to see you go on a holiday like that with your DC.

HellenaHandbasket Sun 20-May-18 18:20:35

All of the above. With £150k we could clear the mortgage, buy a £10k car and have a £10k hol.

With £100k I would pay £80k off the mortgage and split the rest between other things

Amanduh Sun 20-May-18 18:21:02

I’d def pay off the mortgage first

CountFosco Sun 20-May-18 18:21:17

I'm about to get an 'early' inheritance from a relative who is alive and well. We're splitting it between reducing the mortgage, long term savings for retirement and a (relatively!) small amount is being spent on some things for the house.

Yesiamhappy Sun 20-May-18 18:21:39

Spend 20% on the fun stuff and use the rest to pay off your mortgage

Mannix Sun 20-May-18 18:22:43

As others have said, I'd do all three! Have a great holiday (for say £10k) buy a new car (say £20k), and spend the rest paying off the mortgage.

phlewf Sun 20-May-18 18:26:14

I don’t think of it as spending carefully saved money, more like money they were keeping aside in case they needed/wanted it. But they passed before that happened. Therefore your DH gets the benefit to make the same choice.
And I’d do the same chunck of the mortgage (which makes a huge long term difference), new car (saves money long term) and a holiday.

ohreallyohreallyoh Sun 20-May-18 18:26:16

I would pay the mortgage as the priority - because the money saved would probably pay for a holiday within a few months and then a car. I would do home improvements next - for me that would be a new roof and decoration throughout - then put £10k where I could access it without problems for the proverbial ‘rainy day’. If there was then anything left, I would seek advice on investing it.

cadburyegg Sun 20-May-18 18:28:09

Depending on exact amount I would do a house extension, save some money for the DCs, pay some off the mortgage off, buy new cars, put some away.

Our DCs are very young so an amazing holiday could follow in a few years.

Donotbequotingmeinbold Sun 20-May-18 18:28:26

I love this sort of thread! I would spend 15k x 2 on 2 new cars to replace our old chuggers. 10K on a wonderful cruise for the family. Put 80K away for the DC. The rest I would spend on just having a little extra on a daily basis to make life more comfortable whilst the DC are small and our earnings are greatly reduced.
I would not put it in the mortgage as ours is tiny and very manageable so paying it off wouldn't make as much difference to our lives as the above.

Yogafailure Sun 20-May-18 18:29:27

If I inherited £100k I'd pay my mortgage off, pay my CC off and probably take the family to visit relatives in Oz/NZ.

However I inherited about £2 last year and I found it so awful and emotional that I'm 🙉 about thinking of when our respective parents die

Yogafailure Sun 20-May-18 18:29:57

*£2k from my gt auntie

Etymology23 Sun 20-May-18 18:31:53

Inheriting 100k? Probably pay off the mortgage because then could save the cash from that for a holiday! I don’t need a new car though - if I did I would use some of the cash on a new-to-me car.

Merryoldgoat Sun 20-May-18 18:34:58

£70k on house renovation: loft with 2 rooms and a jack and Jill en suite; landscaped garden; new driveway and front garden fence; basic redecoration of two bedrooms which are hideous.

£10k on amazing Caribbean holiday for the 4 of us

£10k to each of my sisters

Leftover in savings for emergencies (boiler etc).

drquin Sun 20-May-18 18:44:46

Probably prioritise the mortgage, as that's usually the biggest debt ..... and being free of it would give me most financial security.
Bear in mind, monthly income now not being used for mortgage could be used for car loan / lease payments and / or short term loan for a holiday. Not suggesting more debt for the sake of it, but work out what difference it might make (long term) spending all 100k on mortgage and using the equivalent of mo tagged payments on car / holiday / DIY versus spending 80k on mortgage, 10k on car, 10k on holiday etc.

thecatsthecats Sun 20-May-18 19:29:06

For 150k:

50k for kids savings (don't have any yet, but would mean not having to make a monthly saving once I do)
50k off mortgage (when I can, anyway - early repayment charges ATM)
50k to split between a non frivolous car (10k), some home improvements (15k), and a decidely frivolous holiday (10k) and the final 25k spent across the following five years of holidays.

I tend to be of the opinion that one amazing holiday is not quite as good as two fantastic holidays, which is not as good as three great holidays. I'd rather have one great one, then lots of good ones that I always have something to look forward to and not have to worry about financing.

AlonsosLeftPinky Sun 20-May-18 19:35:31

If my mortgage were that big, I'd use it to pay it off because that would provide the biggest long term benefit to my family and bring the most security.

I don't particularly like inheritance being used for frivolous spending though.

LePamplemoussse Sun 20-May-18 19:37:56

Definitely wouldn’t pay off the mortgage, that’s the cheapest loan you’ll ever get. I’d invest it in buy-to-lets.

BoxsetsAndPopcorn Sun 20-May-18 19:40:27

I'd clear what's left on our mortgage and save the rest for decent deposits for the children's future homes.

I'd feel awful spending somebody else life savings on a holiday or car so couldn't do it.

Angie169 Sun 20-May-18 19:40:41

I would def us some of it to pay off the mortgage / loans and a holiday I do not drive so none on a new car .
How about putting some into a account that you can not touch until a particular date, say DCs 18th /21st birthday or a big wedding anniversary for you and DH .
Did the person you are receiving the money off support a charity , you could donate some of the money to the charity in their name .

clothcollector Sun 20-May-18 19:43:09

easy. pay a chunk off mortgage and use my own cash for fluffy, frivolous spending.

i'd want my children to be sensible and cover their arses before hitting louis vuitton and going on a 1st class holiday to the maldives etc. dammit, we've worked hard for that cash!!

Username9876547 Sun 20-May-18 19:46:15

But if your mortgage was bigger than the inheritance? It would make more sense to put the lump sum towards the mortgage, but a lovely holiday and new car would really make a difference to us right now!

PJ04JCW Sun 20-May-18 19:47:51

I’m about to get £225k from my mum’s estate and am going to buy two £100k flats to rent out, clear bills, and have a 6 month sabbatical before my daughter goes to school.

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