What to buy with £100k?

[Tristani]

Our family consists of DH, dcs and I.

DH & I have put 50/50 for deposit. We earn roughly the same salary which goes into joint account and pay the mortgage from there. House worth ~£600k with £250k outstanding. We overpay. No other loan.

My dad is wealthy, most tied up in assets. He is very generous with me and the children. Dcs have investments and savings which they can access at 18. Until then, they have access to the best education and hobbies.

My dad wants to gift me £100k. He has expressed that he does not want me to put it in the mortgage. He wants it to specifically benefit the dcs.

I am not sure how to honour his wish. What could I do with £100k?

If they have access to best education and hobbies then the only other thing I can think of is holidays/travelling

Travelling is the only thing that springs to mind. Or you could purchase a buy to let in a cheap area to hold in a trust for them.

How old are the children? How many do you have? Did he have any suggestions for what to do with the money? So they already have hobbies/private school? savings?

Holiday? Following a special interest? It depends on their ages.

If it is to actually buy something then I suggest a nice Moho and enjoy some travels while the DC's are young (you don't specify ages).
Freedom, independence, memories and if you so desire, a new location every day.
£100k will buy a good sized family model.

I am biased as this is what we did as kids and still do.

Holiday home in France

What are the tax implications on a gift of 100k?
My dd had to declare 6k I gifted her.

Start working backwards. You can draw up an Excel sheet and deduct from the 100k. For each child, allocate money for university tuition fees and, if they move out for university, you might need to consider transport and accommodation costs. Use the rest of the money to go on a vacation with your family. If you have any money remaining from the 100k, you can put it towards doing some landscaping or something like that, as it can add more value to your property.

I'd be cross at a gift coming with strings tbh.

But could you say you'll use it for 'holidays' and then just overpay the mortgage with the equivalent amount?

My dad wants to gift me £100k. He has expressed that he does not want me to put it in the mortgage. He wants it to specifically benefit the dcs.

I don't see the point of stipulating eBay you can use it for. But you'll benefit your DCs most by investing it on their behalf for the future, even if they already have investments in their names. I don't see the point of spending it when they already have access to excellent education and hobbies.

Thank you for the suggestions.

My dad lives abroad so we don’t need to declare anything and have no taxes to pay on this gift.

We already go on holiday at most school breaks.

Holiday home in France is a great idea that I will look into. Also cheap investment property is another great suggestion.

Shouldn’t be any providing he doesn’t die for 7 years. I don’t understand why your daughter had to declare the 6k. There are annual limits for IHT but these normally only become relevant when the giver dies.

It could go towards the university fund.

Declare to who? Assuming you’re in the UK you only have to declare cash gifts if the person gifting dies within 7 years and unless you’re posting from the grave it seems unlikely you’re dead.

How about opening a savings account or pension for each of them. Leaving it to grow will create a nice little nest egg for them when they are adults.

33k each towards house deposit

Pension for each DC (financially this is the best thing you can do)

Even nicer holidays than you usually do.

How old are your children? Could you put it into a pension fund for each of them?

University fees and living costs, or invest towards helping DCs with housing when older.

I would invest it for uni costs or a house deposit. Doesn’t sound as if they need anything now.

Re house investment in cheap areas. It puts up the prices and makes housing unaffordable for the locals. It's happing across my city and it's another factor that is making housing impossible to find. If you are going to do it at least reign in your greed and make the rent affordable. Re buying a holiday home, try to find one that has already been taken out of residential use. Housing shouldn't be people's play things. How housing is used has massive consequences.

A standard 3 year English uni cost will be c £50,000. Including tuition fees and living costs, accommodation.

x 2 DC = £100k.

A static caravan by the sea somewhere. Crap investment in terms of money but great to have a little bolt hole.

It's more money than you know what to do with (or you wouldn't be asking here) so I'd make some generous donations to charities in DC's names.

I’d invest it for their future.

Put it in a pension for them

If i was being sensible id Set them up a pension each or keep for uni fees.
Maybe a holiday first.