250k inheritance to spend but on what??

[TheMuminator2]

Came out of the blue from a relative we hadn't seen since we were young. Am tempted not to spend a penny and just invest

250,000k would buy me 20 years off work, I'd do that.

In your case, pay off your mortgage, invest the rest in property abroad.

i'll take a cut if you're struggling to spend it

CurlyhairedAssassin: No, no income tax is being paid on the estate. No tax is paid up to 900k given it is the combined estate of a couple passing down their home to their children.

If I didn't enjoy working then I would use the money to reduce my hours or take a lower paid, more enjoyable job.

Pay off mortgage and other debts first.

If there's anything left, education fund for the kids.

And a nice holiday!

Pay off mortgage or buy a house if renting.
If any leftover put some aside for each of the kids as a deposit for their first homes.
New cars.
Holidays.

Pay off mortgage. None left after that. But there would be plenty of spare income to play with each month.

Definitely pay off your mortgage, stash some away where you can't get at it quickly, & give some to charity

(I wouldn't give to Macmillan though - after they hijacked the ice bucket thing, & then I discovered the NHS/hospices fund 'Macmillan' nurses after the first 3 years, I went right off them )

Not income tax, Irregular. Inheritance tax.

Yes, sorry, that was a slip - obviously I meant inheritance tax from the numbers I was talking about.

Go to wealth management firm like Brewin and Dolphin - they have their own financial advisors.

250 grand invested should yield about 10 grand a year. An excellent supplement to your income.

Rather than paying off a mortgage in one go incurring early redemption penalty, you can use the income to pay the mortgage.

The more capital you spend upfront the less you have to invest, the lower the annual yield.

You could buy a BTL property instead and live on the rent but it’s a lot more hassle and more risk than reaping dividends from investments.

I would pay off my mortgage, buy a new car and put money aside for the kids university (£40k each to cover living costs at least) then spend the rest on a really nice holiday.

Invest in property.

Lyposuction for me.
Investments and holiday for you.

Don’t the children have to be resident in the house?

Sorry, not picking, just interested. I was executor on an estate and am wondering if the rules have changed.

I guess it’s to avoid the situation of an adult child living in the home of a deceased having to sell the home to pay IHT. It’s becoming more and more common for 20 somethings to live in a family home. Even 30 somethings.

I guess I can see where you’re coming from in feeling “guilty” at your inheritance because you were already financially secure. But many people who inherit are not, even people who inherit large amounts. Those people will end up with more disposable income to put back into the economy, or pay income tax if they save it. Or end up paying for their own retirement care because they have the funds saved, rather than having to rely on social care.

Swings and roundabouts. Most of us Are not super rich.

If you are considering donating to Mind, please make sure it's your local branch, not National Mind, it will get swallowed up in running costs and paying Paul Farmer's salary. Hospices get no government funding, this is where I would be looking to donate any money I had to spare. Good luck, be sensible but have some fun too :-)

Hi. Sorry for the loss of your relative. I inherited money from my grandparents when they passed away. We bought a new detached house as had lived in a semi detached. It's on the same estate as our previous house but on a quieter road. I paid cash so we have no mortgage. The house needed completely updating so we did that. I put a few thousand in my daughters trust fund account and also opened a children's bond with a few thousand. Bought a property for my mum which is in my name so a long way down the line its also a investment for my daughter. Bought myself a new car and gave money to my mum to do the same. The rest of it I hold in savings with NSandI and will hopefully go towards my daughters education when she's older.

Not read whole thread but it's important to remember some people make that in less than a year's work!!

Pay off mortgage, money into stocks and shares issa for children.... university funds...
Emergency fund.

Top up pensions... ISAs...

Perhaps buy another property...

Then... fun money! Dream holiday...

Then charity.

I'd love too pop money onto old folks basket at Xmas..

No, children don't have to be resident in the house - though it does have to be the deceased's main residence. The nil-rate main residence band was introduced in 2017 - but you can back date before then for the spouse that died first. Even without that in is 650k nil rate band for a couple. I know more about this than I ever want to.

"guilty" isn't quite the right word. I'd just prefer to give some away where it can be more useful. And money spent by charities "goes into the economy" just as much as money spent by anyone else.

I know that not everyone who inherits 250k+ will be particularly well off to start with, but I do think everyone can afford to spare a fraction for those who are unlikely to ever receive that sort of money.

Invest Invest Invest

Selfishly, charity would be the last thing on my mind

Yep me too

Not read whole thread but it's important to remember some people make that in less than a year's work!!

SOME people? It’s about 10x the average annual salary is it not?

Anything outside the UK, in the next 3 weeks...

Spend it on birds, booze and fast cars. The rest you can squander. ( copyright, George Best)

Always always pay off debits first.

That would cover what’s left on my mortgage with about £2000 left. So I’d pay off mortgage and put the £2000 towards a family holiday.

The money you will then save on your mortgage and interest you can save or spend on treats