Inheritance

[irregularegular]

What would you do if you inherited 250k?

First, in your own circumstances?

Second, if you were a couple in 40s and 50s, teenage kids, already very comfortably off. Already in our forever house that is more than big and nice enough. mortgage will be paid off in 5 years, no other debt. Enjoy our work. Pension looking ok

And yes I think inheritance tax should be a lot higher. It isn't fair and adds to inequality. But I'm not signing up to it unilaterally!

I'd use it to help pay for uni for our two kids, one of whom just started and the other who will start in two years, then save the rest for retirement.

In your situation I'd pay off the mortgage early and invest the rest in a mix of stocks and bonds.

As well as doing as @MissConductUS says, I'd be looking at how to make my nice house cheaper to run. So installing more insulation, upgrading the lighting to LED, installing solar and /or ground source heating/heat exchange unit etc/modernising the heating system, better glazing, looking at saving run off water and recycling grey water. I'd also look at rewiring and paintwork and make sure it'd last me out without too much cost, and generally future-proof the house. I'd also consider what would happen if one of us became too ill to get upstairs - is there a downstairs wetroom one could shower in a wheelchair for example, and if we needed live in carer is there room for one? I'd look at swapping cars for more efficient/electric models.

Finally I'd consider gifting some to various charitable causes I was interested in.

I’d put some into trust for the children, I’d put some into making sure my pension was more than “ok” and I’d put the rest away for a rainy day.

I’d set aside a small amount to buy something really beautiful to remember the person who died.

Pay off the mortgage and buy a Motorhome. That's what we did and the rest into our pension pot!

I inherited well last year, although less than you. We paid off the mortgage (£30k), bought a new kitchen and upgraded the car. The remainder I have invested in S&S ISA's to enable me to quit nursing at 55 (8 years) and still live comfortably until the state pension and remainder of my nurses pension kicks in. So more long term gain really. Am also doing quite nicely out of a few thousand in premium bonds!
FIL already has investments for the DC for uni etc.

A couple of great holidays and invest the rest with a view to either retiring early or helping kids buy a house. I would also give 10% to charity (not hypothetical, we came into a similar sum a couple of years ago although we used a big chunk to also move house).

I would
Pay off mortgage
Have some amazing holidays
Gift to charities we support
Invest for our retirement and kids

That would clear our mortgage so would probably put nearly all of it on that and any other debts. Then book a nice holiday.

Will already donated some to charities. Which doesn't mean we won't but might make a difference.

Thinking broadly in terms of putting two thirds away for house deposits for children. Or other need if more appropriate. Need to think how best to invest that.

And one third fun fund. Not all to be spent at once by any means! So would also need investing but in more flexible way.

Investing could mean paying mortgage and paying the mortgage payments back to myself, if you see what I mean. Gives pretty good safe return once take tax into account, but not sure it is the best.

How would investing for children work? To be honest I don't want to hand it over for them to do what they want with too young...

Fun fund would be for lots of amazing travel and/or spending what I want on cosmetic house improvements rather than always holding back. Or another option would be to put it towards a holiday house in France, But probably not yet. When we have more time.

For just me: I’m married, almost 50 with a 20 something son that lives at home, no mortgage, okay job but because I worked most of my life part time I’m currently looking at retiring at 67. So with £250 grand I’d put a chunk away for when my adult son buys his first house (£50 grand) I’d also future proof our home. I’d invest in premium bonds for fun and buy a campervan. With the rest I’d pop it in a pot as a safety net in case I want to retire earlier or one of us gets ill or loses our job or anything else that might crop up. I’d probably call it my worry pot!

In the scenario you gave I wouldn’t bother paying uni fees, my son’s student finance loan is £45,000. I’d save the equivalent for a house deposit as what he’d save in mortgage repayments would outweigh what he has to repay student loan monthly. Plus, no job or low paid job equals no payments, a mortgage isn’t flexible like that. So that would be £50,000 invested for each kid for a house deposit. I’d pay off the mortgage early and buy the maximum premium bonds for investment/fun. A family holiday and a new car for treats. Anything left I’d put in an account that wasn’t tied in (for now) in case anything cropped up in the next 12 months.