To feel like this IS actually a decent safety net?

I agree with this, I'm afraid. The thing is, when you DON'T have that type of money and have had to be careful all your life, you've never had to consider how long it would actually last and what you can do with it. So it sounds amazing and yes, it IS lovely and it's right to be grateful.

But I always work in how many years' full times wages it is as a guide to how much it REALLY is. What does it equate to in real life? Say hypothetically you lost your job tomorrow and had to rely on the savings to live. If you're on, say, 25k a year full time, that's not even 5 years. And you're only 37 with a substantial mortgage.. Are you hoping that the 4 days a week would just be a temporary thing for a few years?

But on the other hand, time is precious too. And value isn't always monetary. Is that one day a week going to add more to your life than losing a day's pay and the equivalent pension contributions?

OP wouldn't have to give the money back if the donor died in less than seven years. It's only that the value would be included in the estate for tax purposes. It's not the recipient's problem.

And as for care needs, if I chose to give away £120k of my assets, the local authority couldn't prove I might need the money in twenty years time. Again, it's not the recipient's problem.

Sadly, £120k is not enough to buy a new brother!

Pay off your debt. Look at how much less you would take home if only working 4 days and if you plan to do that for the rest of your working life (probably 30 years or more) and what you would do with your 'extra day'. How much can you overpay on your mortgage without penalty because that will have a bigger effect. Plan a nice holiday or new car or home improvement and enjoy the relief of having a safety net of savings.

Yes great point - and deprivation of assets if the donor may have care needs.

It is below the threshold for IHT

https://www.gov.uk/inheritance-tax#:~:text=There's%20normally%20no%20Inheritance%20Tax,a%20community%20amateur%20sports%20club

It’s a wonderful gift. If you feel rattled about part time work out why. Do you have a pension plan? Do you know how to maximise the gains from this money? Do you know about saving options? If your part time work means you eat into your gift then I would think k twice two unless it’s for a specific amount of time or a specific reason. Now is a fab time to make your future secure - your brother is a dick by the way.

Not one person has mentioned inheritance tax and the seven year rule. OP, please research this and plan accordingly before you spend or use a lot of the money.

It is a LOT of money and life changing for most people. Ignore him, he sounds insufferable.

I wouldn’t go part time, I’d want to keep the pension improving and invest the gift / pay off some mortgage though.
I don’t have a mortgage anymore but I’d be very very happy with that gift!

Sure it's important to plan financially, but personally I'd prioritise working less over other things that other people spend their money on.

Or a divorce 😤

It's a decent chunk of money but will be more life changing to you than him. It wouldn't be enough for me or DH to go part time without burning through it relatively quickly.
Pay the debt, pay another 80k to the mortgage keep 30k in accessible savings/ISA/premium bonds. The reduced mortgage payment will help to save further.

200k left on your mortgage is a fair amount. I would have a look at doing the Rebel Financr School course.

Yanbu don't let this spoil it for you. it's an amazing gift.

Whether you should change work or think about what to do with it is another question.

Congratulations OP. That's amazing. I think you knew when you posted that this isn't just pocket money and your brother is being a dick. I know very few people who wouldn't be blown away by this. If it were me I'd pay a chunk off your mortgage and save most until you need it. I think PT is a bit risky. if you own your own home on 1 salary there will be unexpected expenses some day, whether that's just a new washing machine or boiler. You could finally do something exciting you've always wanted like a new patio, or turning the box room into a walk in wardrobe. Take a nice holiday first though!

That’s not the way you should look at it.
At 37 there is a long way to go to retirement age.
I wouldn’t be going part time at that age and then have to work to 70.

£120k - I think it’s significant. I’d drop a day but I’m closer to retirement than you are, and my children are adults.

At 37, I would have invested it or paid into pension over a couple of tax years, depending on my mortgage rate.

Enjoy some of it too. Raise a glass of champagne to the kind donor - better still, take them for a drink, your treat!

Your brother is a dick.

I would pay of the debt you have so that releases more income for saving or spending and put the rest in an account to think about what to do

take no notice of your brother,

Of course everything is relative and is he has ££££ in the bank he may not appreciate this as much as you

HOWEVER (with that all caveated). He is being totally unreasonable, out of touch with how 99% of people live, and frankly very rude !

Christ. £120,000 is… well, depending on where in the country you live, could be half the cost of your house !! Even in more expensive areas that’s a blooming house deposit.

honestly, ignore him. And if he has form for being unhelpful and demeaning to you, ignore him more often !

enjoy your windfall and the feeling of security it brings (I would)

Side note:
Also can we go back to saying “I was given” or “someone gave me” - thanks ☺️

You could put a deposit down on a buy to let flat with that op and clear your 10K.
Ignore your brother he sounds like an arsehole.

I was gifted 90k, it really helps and I am very grateful.
Take no notice of DB, a lot of people would be made up with 120k. It's a generous amount. Pleased for you.

He sounds awful! It also sounds like he’s wealthy due to his wife’s circumstances not his hard work, it’s a decent amount of money to give you some choices. I would pay off debt, pay off some of the mortgage, have a few nice treats and put a chunk in an account where you can get 4% interest. I wouldn’t necessarily go part time at this stage, but if you continue to add to your nest egg (which you’ll be able to do with lower mortgage repayments and no debts) you could plan to do so in the future. Good luck! Enjoy it.

Well its not enough to go part time. It is enough to pay your CC debt, pay down your mortgage, and have a substantial emergency fund but its not enough to be called “fuck you money” and enable you to walk away from work.

£120k would be an absolutely life changing amount of money to me. I would be overjoyed to have that handed to me. Like, down on my knees, crying in gratitude happy.
And I don't imagine I'm alone.
Your Brother simply doesn't know how lucky he is, and the best you can do is think "well, good for him" and then get on with whatever it is you want to do.