What to do with £50k

[DtPeabodysLoosePants]

If you were 80 and had a lump sum of £50k from a house sale what would you do with it?

I wouldn’t tell anyone and the family wouldn’t then be speculating on what would happen to my money.

A good holiday and some nice bits for new flat. Then use to supplement income as needed/wanted. Good Xmas or birthday presents this year for loved ones and update will.

It sounds very sensible to move into something sensible for her needs. I think she needs to keep the £50k accessible and not take risks as that seems like it would be her only savings. I can’t see any financial advisor suggesting taking risks with the £50k. I could see someone perhaps suggesting £5-10k in stocks and shares but at that sort of sum, you’d be spending a disproportionate amount on fees unless you self managed via a diy platform.

Your / their plan sounds a good one.

Would only be concerned if the flat is one of those dreadful Mcarthy Stone ones that a super looking but cost ££££ and have specific re sell terms that are in the favour of MS, not your relative.
If so, I'd look for a similar flat from a charity provider rather than a corporation.

Keep it for private care, current threshold for funded care is £23k I believe. Funded care covers the essentials but can be rushed, private is more generous. But I’d give everyone a nice present as well - eg £250 for the grownups and £100 for the grandkids.

Oh and definitely make sure the legal stuff is sorted! Poa for health and finance, wills.

If she’s likely to need paid care soon watchout that giving it away might be considered deprivation of assets.

Boob job

It's not McCarthy Stone. It's a refurbished mansion in a beautiful spot with amazing views. There is nothing similar in the area and she wouldn't leave the area.
Any care she'd need in the immediate future would be done by me as it has in the past when she's had the falls. She's in good health and fully independent, drives, goes to the gym, walks.
She's not internet savvy so no way she'd be doing anything with stocks and shares. Getting her to check her email is difficult enough!
The family don't get on. Or rather I'm NC with the toxic lot.

With regards to inheritance, if she stayed in her current house then there'd be next to nothing left once the mortgage, debts, funeral costs etc had been paid off. Moving would mean that the money from the sale of the apartment would be inheritance so it's win win for both her and the family. I'm not bothered about inheritance, I just want her to be worry free and enjoy the rest of her life because she's always struggled.

If all the finances check out - particularly the interest-free £100K mortgage, which sounds like it might be the only issue - then she should go for it.

It would be unusual for a loan of that size to be interest-free - that's a bad deal for the lender! No return on their capital over a long time? - so just make sure that whatever the terms are there are fully understood.

But otherwise of course she should go for it. Struggling with upkeep on a house and garden at 80 is no fun at all.

@NoSquirrels she's paying off her current mortgage which is the interest free £100k. In the new place she'd be mortgage free as paying cash. No mortgage, no debts.

So she's paying down the £100K mortgage? - it's just it's really quite unusual for a mortgage of that size to be interest-free.

Do you mean "interest only" i.e. she's effectively paying rent on the £100K and not paying it down at all?

Interest free would mean that the lender wasn't getting any return at all on their investment, and that would be very odd for a loan of that size. So they would just lend £100K and get back £100K over time.

That's why I'm saying just be very careful about the paperwork and check for hidden repyament charges/bonuses etc which could easily eat up money you weren't expecting.

Sorry, voice of doom and hopefully you are right about the maths but worth making absolutely sure.

Sorry, yes, interest only!

Great - so she'll cut her living expenses hopefully? If all the maths adds up and your mum is happy, it's her decision to make and she should go for it.

I'd spend SOME of it on fun things.

Memberships to art galleries or cinemas or similar.

Enjoy yourself! Do the things you wanted to do but could never afford. X

Downsizing sounds like a good move for her. Before she gets much older and hits the can't be bothered stage.

The £50k I'd bank, maybe splurge on one holiday. ISA for £20k and put another £20k in at the start of the next financial year.

Mortgage papers checked and no early settlement fee but a fee if a maximum of £120 for something or other so that's all good.

Mum was a bit at me asking about things on here but I pointed out it's the best way to get unbiased opinions and advice. Her sister told her she needed to spend £20k on the new place-she doesn't it's fine but needs decorating and new carpets. Brother is on about risk and financial advisors, sister is saying she needs to spend thousands too. Other brother is far more grounded and hasn't come out with any nonsense. The £50k is what she'd have left once she done what she needs to do. They see her as incapable I think which pisses me off as she's not at all.

This thread has really helped, thank you.

I would put money in premium bonds: they are easy to access if necessary.

Financial advisors do not come and see people out of the goodness of their own hearts to give gratis financial advice - they want to make some commission (which is not unreasonable - they should be paid for their advice) by selling a product such as an investment / pension etc. Which is all very well if you want to invest for the future but this 80 year old lady with her £50k doesn't need to do that

I think you’re being over optimistic about care. Someone can be doing great, and then not very quickly. Care needs can be significant and 24:7 - could you provide that?

Who has power of attorney?

No one has POA as far as I know.
I've cared for her before when she has needed full care but yes it that was to then be 24hr then that would be different and I assume she'd have to go into a home then so her new property would be sold to fund that.

Bank has rubbish interest rate; invest it or have fun with it.

Unwise for no one to have POA.

She's going to sort POA. She hasn't needed one so far I suppose.