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Original poster

What to buy with £100k?

109 replies

Tristani · 16/06/2024 07:17

Our family consists of DH, dcs and I.

DH & I have put 50/50 for deposit. We earn roughly the same salary which goes into joint account and pay the mortgage from there. House worth ~£600k with £250k outstanding. We overpay. No other loan.

My dad is wealthy, most tied up in assets. He is very generous with me and the children. Dcs have investments and savings which they can access at 18. Until then, they have access to the best education and hobbies.

My dad wants to gift me £100k. He has expressed that he does not want me to put it in the mortgage. He wants it to specifically benefit the dcs.

I am not sure how to honour his wish. What could I do with £100k?

OP posts:
Original poster
Tristani · 16/06/2024 08:21

Pension makes the most financial sense but it’s such a long time away. A property investment looks like our best option.

OP posts:
NoSquirrels · 16/06/2024 08:21

How many children? £50K each (or £33K, or £25K) invested in a S&S ISA until they’re ready to buy a house to live in themselves will be the best thing you could do. Keep it separate from university funds.

Nice problem to have!

Original poster
Tristani · 16/06/2024 08:20

SD1978 · 16/06/2024 07:53

Does he not realise though- that given your current lifestyle- holidays regularly, access to hobbies, that by putting at least some i to the mortgage it benefits the kids greatly by freeing up potentially time and money?

My dad believes that the mortgage is being paid anyway so he does not want to contribute to this. It’s his choice and I respect this. We should be mortgage-free in the next 5 years anyway.

OP posts:
Icanwalkintheroom · 16/06/2024 08:20

I’d be investing it for their future. Not for them to access at 18 but much further into the future, to pay house deposits, weddings etc later. Or even pensions.

MereDintofPandiculation · 16/06/2024 08:19

bergamotorange · 16/06/2024 07:28

I'd be cross at a gift coming with strings tbh.

But could you say you'll use it for 'holidays' and then just overpay the mortgage with the equivalent amount?

Which has the fewer “strings”, being given, say, a pair of tickets to a concert or the equivalent sum of money and instructions “to use it to enjoy yourself”?

Original poster
Tristani · 16/06/2024 08:17

fatphalange · 16/06/2024 07:50

It's more money than you know what to do with (or you wouldn't be asking here) so I'd make some generous donations to charities in DC's names.

Lovely suggestion, but my DCs will not really benefit from this.

OP posts:
Springchickenonion · 16/06/2024 08:17

Can you give or save some of it for dcs to use as they wish. Then use one of PPs sensible plans for the rest?

EnthENd · 16/06/2024 08:11

Private schooling.

SD1978 · 16/06/2024 07:53

Does he not realise though- that given your current lifestyle- holidays regularly, access to hobbies, that by putting at least some i to the mortgage it benefits the kids greatly by freeing up potentially time and money?

Figgygal · 16/06/2024 07:53

If i was being sensible id Set them up a pension each or keep for uni fees.
Maybe a holiday first.

newbeggins · 16/06/2024 07:52

Put it in a pension for them

DustyLee123 · 16/06/2024 07:51

I’d invest it for their future.

fatphalange · 16/06/2024 07:50

It's more money than you know what to do with (or you wouldn't be asking here) so I'd make some generous donations to charities in DC's names.

ThePoshUns · 16/06/2024 07:50

A static caravan by the sea somewhere. Crap investment in terms of money but great to have a little bolt hole.

ReplenishMyCoffee · 16/06/2024 07:49

A standard 3 year English uni cost will be c £50,000. Including tuition fees and living costs, accommodation.

x 2 DC = £100k.

Ponoka7 · 16/06/2024 07:48

Re house investment in cheap areas. It puts up the prices and makes housing unaffordable for the locals. It's happing across my city and it's another factor that is making housing impossible to find. If you are going to do it at least reign in your greed and make the rent affordable. Re buying a holiday home, try to find one that has already been taken out of residential use. Housing shouldn't be people's play things. How housing is used has massive consequences.

Gabbsters · 16/06/2024 07:44

I would invest it for uni costs or a house deposit. Doesn’t sound as if they need anything now.

Loopytiles · 16/06/2024 07:42

University fees and living costs, or invest towards helping DCs with housing when older.

determinedtomakethiswork · 16/06/2024 07:41

How old are your children? Could you put it into a pension fund for each of them?

YorkNew · 16/06/2024 07:41

33k each towards house deposit

Pension for each DC (financially this is the best thing you can do)

Even nicer holidays than you usually do.

Ginmonkeyagain · 16/06/2024 07:38

How about opening a savings account or pension for each of them. Leaving it to grow will create a nice little nest egg for them when they are adults.

Changingplace · 16/06/2024 07:36

Monty27 · 16/06/2024 07:26

What are the tax implications on a gift of 100k?
My dd had to declare 6k I gifted her.

Declare to who? Assuming you’re in the UK you only have to declare cash gifts if the person gifting dies within 7 years and unless you’re posting from the grave it seems unlikely you’re dead.

Original poster
Tristani · 16/06/2024 07:32

ExitChasedByAPanda · 16/06/2024 07:27

Start working backwards. You can draw up an Excel sheet and deduct from the 100k. For each child, allocate money for university tuition fees and, if they move out for university, you might need to consider transport and accommodation costs. Use the rest of the money to go on a vacation with your family. If you have any money remaining from the 100k, you can put it towards doing some landscaping or something like that, as it can add more value to your property.

It could go towards the university fund.

OP posts:
LaPalmaLlama · 16/06/2024 07:31

Monty27 · 16/06/2024 07:26

What are the tax implications on a gift of 100k?
My dd had to declare 6k I gifted her.

Shouldn’t be any providing he doesn’t die for 7 years. I don’t understand why your daughter had to declare the 6k. There are annual limits for IHT but these normally only become relevant when the giver dies.

Original poster
Tristani · 16/06/2024 07:30

Thank you for the suggestions.

My dad lives abroad so we don’t need to declare anything and have no taxes to pay on this gift.

We already go on holiday at most school breaks.

Holiday home in France is a great idea that I will look into. Also cheap investment property is another great suggestion.

OP posts:
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