What to do with inheritance?

[H0TK]

Inheritance of £75k

So we have £100k left on mortgage and 15 years.

I have a pension, only 40k

Husband has no pension, runs his own business

Would you pay off some of the mortgage? Or start a pension for dh? It's his inheritance

Thank you, that good advice

No other debt

£10k premium bonds

Get financial and legal advice to figure out how to keep that money yours. If you use it to overpay the mortgage and your marriage breaks down, you lose half of it.

One of my relatives lost an entire inheritance because she naively treated it like joint money and the "investment" her "D"H persuaded her to spend it on turned out to be worthless. She's now divorced with nothing to show for it. I would never recommend that any woman puts an inheritance at risk nor lets her husband anywhere near it.

He has staff and a lot of expensive machinery

Well it's his inheritance actually so perhaps I should be persuading him towards the mortgage rather than the pension!

I don't think we would split up though

It's something I've come across with a few small businesses. If your plan is to sell up, you need to be planning for it 10 years ahead.

Can I ask why? What would you be doing differently if you knew you would sell in ten years?

Thank you so much

Maybe set a bit aside for maths or reading lessons....

The inheritance is £75k.

You'd be planning to maximise the value of the business at the point you come to sell. And you might be bringing on staff so that they're in a position to takeover. Start planning ten years out, although some steps you may not start taking until five or three years out.

Selling a business is rarely easy or quick, and it's even harder if you haven't planned for it.

Ah, I thought it was yours. Sorry.

*You'd be planning to maximise the value of the business at the point you come to sell. And you might be bringing on staff so that they're in a position to takeover. Start planning ten years out, although some steps you may not start taking until five or three years out.

Selling a business is rarely easy or quick, and it's even harder if you haven't planned for it.*

Thank you yes, he talks about selling it and I often wonder how that will actually happen!

Pensions. You are going to be very poor in retirement and it is very soon.

Sorry I misread. I thought it was £100k inheritance. I would divide as above in this instance...

I would top up the premium bonds to the maximum and spend six months deciding what to do, put £20k in an isa before April.
I'd want proper advice before starting a pension, there's not much to get back with a pot of £15k at 54.

Clear as much off your mortgage as you can then keep "paying" the mortgage by putting the difference between your current balance and new balance into savings or pension each month.

Are you this rude in real life?

I misread £100k owed on mortgage as the inheritance amount. Easy mistake to make.

Drip feeding as you refer to it ... paying pension monthly means 20% will be paid by HMRC. So, I disagree.

I’d pay the full amount off the mortgage saving thousands in interest. Make sure you reduce the term according. This will mean you are mortgage free soon.

your mortgage payment will go down. From month 1 pay the difference into SIPP’s for you and your husband. You have poor pension planning in place so far, and so need to look at this urgently but a huge amount off the mortgage will help

I may have missed this but depending on whose side of the family inheritance came from, I wouldn’t be putting it into any joint assets
isa savings etc
I lost nearly everything my family left me
after 25 years to ex

I'd personally get an accountant to see if the money you save per month by paying off the mortgage early is more or less than the amount you would get by putting it in a pension and then base it on that.

I wouldn’t put it into the pension. He’s already in his mid fifties so It won’t have long enough to grow before you need it to make it worth the tax hit when you remove it (I appreciate you get a tax benefit when you pay in but if he’s a business owner he might also be getting dividends so might end up being taxed at a higher rate when he withdraws the pension). It’s too uncertain. Plus the stock market is very volatile with the current world turmoil. It could lose money.

id pay off the mortgage and save all that interest.