This is an inheritance one...

[Mariagatzs12]

Over the next few years I will be cashing bits of my inheritance. I already receive rent for a property worth £300k and my dad will dissolve the main family business cashing in some £200k. I've done the maths and it doesn't make any sense to sell the property to pay the mortgage off, and the cash lump sum has some conditions attached to it (i.e. not to pay the mortgage off but can buy a BTL, ideally it should be used to open a business).

My husband is more of the idea that it should pay the mortgage. I've shown him that unless we're very disciplined the money will most likely be spent rather than reinvested. So it makes most sense to keep the mortgage.

Considering my dad has a gazillion rules, a BTL is the only option.

Eventually I'll also inherit half of my parents home (£200k, half of my mom's investments, £100k, half of my dad's at least £200k and half the ranch £200k).

So eventually I'll end inheriting a fairly decent amount of money. What do you with it BTL? Pension schemes?

My cousin who is finance thinks the stock market is the option, but I think you have to be super savvy.

All the properties are either in my name or co-ownership with my sister, so some inheritance tax will be avoided.

Also there's the small issue to explain to my husband that ultimately it's my money so I get to decide what to do with it (his opinion counts, but I have the last say). I have no issue with sharing the rental income (I've always had) it's more the lump sums/property.

To be honest I think for the sums of money you are talking about I would take (pay for) some proper financial advice over what people on the internet tell you. But for what it's worth it seems like for this sum of money your Dad is giving you now, he only wants you to buy a BTL and so you don't seem to have much choice in the matter (personally I can see from your DH's point of view that depending on the interest rate you are paying, overpaying or paying off the mortgage could be just as sensible a use of the money but its your Dad's money at the end of the day so he calls the tune!).

For your eventual inheritance (and hopefully that is some way off), you will by that time have already at least 2 BTLs plus your current home right (your family home, the BTL you have now plus the BTL you'd be buying with the new chunk of money, am I right?). For me that would be ample investment in property and I'd be looking to diversify in a tax efficient way (you don't say your current income and whether with the rental income you are a higher rate tax payer) - probably a combination of bonds, pension funds and stocks/shares but a lot depends on your personal circumstances re employment, income etc. You absolutely do not have to be financially savvy to do the above, just sensible enough to recognise your own lack of savvy and therefore pay someone to make your investments for you - you have lots of choice of very good managed funds that will let you set your own risk appetite and desire/requirement for immediate return/income over long term growth (you'd probably be wise to have a mixture of both) - of course you pay a management fee for this but even for relatively small amounts of investment the return on a well managed funds usually more than outweighs the fees compared to say ISAs...

Thank you! Yes income tax is what got me thinking as for now I'm on a lower income but I don't expect that to last forever, but with 2 BTLs would most likely eventually take me to higher income tax