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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To ask you what you would do with an inheritance?

83 replies

scoobyloobyloo · 01/07/2017 23:01

If you owned your house outright and had no debts and a decent amount of savings - what would you do with 200k? Theoretically speaking of course :)

OP posts:
Turquoisetamborine · 02/07/2017 07:57

It would be just enough to have no mortgages (accidental landlords) or debts. I'd put 100k into a three way split for my two kids and for emergency house repairs/cars for us. Then use the other 100k to buy a holiday let to provide an income.

We do stand to inherit in the high six figures eventually from a few different family members if not used in care home fees but to have access to it now while we are young and crippled by childcare costs and having to work part time would be amazing.

pollyglot · 02/07/2017 08:04

When rich, aged (93) mother shuffles off, siblings and I will inherit a couple of mill apiece. Thought about blowing the lot, but kids don't approve, so might share it between them and ensure everyone has a mortgage-free home and enough to educate the DGC.

busyboysmum · 02/07/2017 08:08

Bought a new car and a caravan which we go away in all the time. Paid off the mortgage so all our income is our own. Big chunk in premium bonds. Extension, new bathroom, log burner, did all the improvements to the house it had needed for years but we couldn't afford. 2 foreign holidays a year......

CPtart · 02/07/2017 08:17

Recently inherited a similar amount. Paid off the mortgage £30k, bought a new car £12k, putting £15k aside for new kitchen, split £40k between two highish interest accounts, topped up mine and DH S+S ISA's and investing the rest in pensions. My ultimate aim is to invest the majority of it to enable me to retire at 55 when I can also get my works pension. So more long benefit really.

ZanyMobster · 02/07/2017 08:23

Would be into my pension/retirement fund definitely (would spend a fair bit on nice stuff first though). It would make a big difference to us as DH is quite a bit older than me which makes things tricky for us to spend our retirement together.

Won't be happening for us though as FIL has just gone in a home (dementia/alcohol related) so he has to sell his property to pay for it. It will run out way before he passes away as he's only 75.

ZanyMobster · 02/07/2017 08:24

Polly - that's a fab thing to do for your DCs. You should blow some though Wink

Mrbrownstone · 02/07/2017 08:31

We had this recently. We extended our house, much needed! Bought a new car , also much needed. The rest we had a few nice holidays for us & children, cleared our debts & supplemented our income for about 2 years. Its all gone now, goes quicker than you think. Was nice while it lasted though.

Marmitelover55 · 02/07/2017 08:33

I bought a new car, paid off the mortgage, topped up pensions and s & s isa's, bought some premium bonds and am having some lovely holidays. I am also planning to pay for private sixth form if DC would like. I also inherited a rental property (mortgage free) which I have kept but it's not earning anywhere near 7%. I may sell this when we retire for additional pension and to avoid DC being hit with an IHT bill. I appreciate that we have been very lucky.

SaucyJack · 02/07/2017 08:44

Do you love your current house?

If not, either spend the money on a complete re-fit, or sell the current one and buy a nicer one somewhere.

My "dream" house would be a Tudor cottage somewhere with a large sunny garden, but that's just my taste.

rightwhine · 02/07/2017 09:00

I'd plan to invest in property then I would spend that income on some great holidays and experiences.
The eventual aim would be to help dcs on the property ladder but if property prices continue to rise that could perhaps be through remortgaging rather than selling.

kath6144 · 02/07/2017 09:16

We are in exactly this position, having inherited from my mum last year - not a huge amount compared to some - but we also unexpectedly got a windfall from my company share scheme at same time (I was keeping the shares to top up retirement pot but the company was sold unexpectedly). Our teenage DC have also recently had an almost 6 figure inheritence, which means they have a very decent house deposit when needed.

We are also mortgage free with plenty of savings, so apart from updating my car and about to go on a USA holiday (which to be fair we had planned to do anyway, didnt happen last year after mum dying, but feel we can splash out a little more now) we are just topping up our SS ISAs at present.

Dont particularly want a buy to let, but having chatted to a friend who recently bought a holiday home, we are considering that, just not sure we always want to go to same holiday place. We have had a caravan for years, so alternative to holiday home is a camper which we can tour in when retired.

We are hoping to use some of the savings to retire at 60 (currently we 53/54) and we will probably add to the DC's deposits when they are looking to buy houses, to reduce our eventual IHT burden.

Neither of us are big spenders, but it is nice to know we are now very comfortable, and we could easily manage if one of us was out of work for a while or became ill. The peace of mind of that security is a great feeling.

BarbaraofSeville · 02/07/2017 09:25

I'd retire or go very part time (1-2 days pw) and cherry pick the parts of my job that I don't mind doing and give up the bits I hate.

With a paid for house and lots of savings, no DCs and no interest in big houses or stuff, I would probably be at the 'I have enough money to do what I want for the rest of my life' stage.

I might use some of the extra time and some of the money to get into things like matched betting, stock market, other bits and pieces of hobby investing.

kath6144 · 02/07/2017 09:44

As a slight aside, do any people who have or are due large inheritences or windfalls, or just good savings, then feel guilty talking about holidays or buying second homes to friends and acquaintances?

Whilst most of our friends are probably similar to us income wise, they have younger parents and none had inheritences as far as I know. We havent had any comments, but suspect might if we buy a holiday home. The friend I spoke to about hers (more of an acquaintance, had gone round for coffee to get USA tips) loved the fact that she could talk openly to me about buying a holiday home and having long haul hols, even though all her friends I know of have decent jobs. She too said she felt guilty talking to them, even though her holiday home has come through careful saving for years.

We have recently taken on a cleaner, the mum of one of DDs friends. She is a single mum, and had been telling me she wouldnt have any days off this year except BHs, as she couldnt afford a holiday, then asked where we were going. I felt very guilty telling her 3wks in USA and felt I had to talk about mum being ill and dying in the hope she realises we had an inheritence.

Similar with the DC inheritance, I am drumming it into them they dont tell anyone. It is hard, as the only people I can talk to about it, and investing it etc, are my relatives who got same inheritence (from a cousin who left his estate to cousins' DC). It has obviously made a difference to our financial plans, as we wont need to help them with house deposits.

34AQuid · 02/07/2017 09:45

Nice holiday, second property.

SabineUndine · 02/07/2017 09:55

I'd buy my dream house in Cornwall and retire and write novels.

ethelfleda · 02/07/2017 09:58

Easy... I would sell my house and the other property we rent and build our dream home in a nice quiet country side setting. House/land prices are fairly cheap where we are!

ethelfleda · 02/07/2017 10:01

kath6144 no i wouldnt feel guilty. It is only money after all Smile and as you're being thoughtful enough to question it you clearly aren't the sort of person who likes to shove wealth in people's faces so you really shouldn't worry and enjoy the best of a bad situation.

jay55 · 02/07/2017 10:09

Put half away for retirement and use the other half to invest in fun startups, or as a theatre angel. I don't want another business for myself but it would be fun to speculate on others and maybe one would pay off.

UnbornMortificado · 02/07/2017 10:18

I live in a poor area so house prices are dirt cheap. We rent so I'd probably buy a house outright and then pay my mams mortgage off. Whatever left save for my DD's.

Notreallyarsed · 02/07/2017 10:22

We have an inheritance coming soon (I wish we didn't, I'd rather have my mum). It's not 200k, but it is a significant amount. We've decided to put some in the kids savings accounts, and get the garden redone properly so that it's low maintenance but pretty as my mum loved gardening and always despaired at my lack of green fingers. What's left we'll save or invest.

LexieLulu · 02/07/2017 10:23

I'd buy a house in a nicer area, and get laser eye surgery x

RoseVase2010 · 02/07/2017 10:26

Save it to pay for school fees and retirement. And possibly a classic car too.

If we were still in the same house we own now I'd put it towards moving or buying land.

Ilikecheeriosyum · 02/07/2017 10:26

I would invest 100,000 to 150,000 in setting up my own business
Then the rest split between a holiday/home improvements/car aka treats

Mrsglitterfairy · 02/07/2017 10:29

If we were given 200k we would buy our house from the council and pay off our debts and have an amazing holiday to Disney with the kids.
Different scenario though so if we already owned our house outright and had no debts then I would probably have a mega holiday and open up a tea room as my little business

Dowser · 02/07/2017 10:35

With houses and cash, I received about that amount.
Done up my own house.
Not sure what to do with the rest.