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?

I think you only pay tax on a gift if the person who gave the money dies within 7 years and then the gift falls within inheritance tax. But the amount of tax tapers depending how close to the 7 years they survive.

You can also gift £3,000 a year tax free (outside the inheritance tax rules) and carry over the allowance from a previous year, so if you don't do it regularly you can gift £6,000 in any one year.

Take them to see Taylor Swift? Taking into account the ridiculous ticket prices and inflated accommodation costs, it should just about cover it... 😉

Start their pension fund and give them a head start.

Junior savings or investment for a mortgage. ( But some which you can dip into if the university situation at the time requires it or they develop an expensive hobby or they want to do a ski trip with school)

Could use some also for family holidays to give them experience on the other hand that would likely involve flying which is bad for the environment. You could benefit them most if you gave the £100000 to an environmental charity to plant trees or save the pear bog and you could visit every year to see developments

Premium bonds up to £50K each, A bit of fun each month getting wins, at the minute maybe a couple of hundred a month average (pocket money, or into other savings), and the possibility of that big one.

Edit: I got £250 on £25k this month, my DD got £1,750 on £50k last month although that was pretty exceptional!

My dream when my children were young was to buy a piece of land. Slightly laughable in my situation but that's not the point.
You can use it to grow an orchard or woodland, build a bird hide, go metal detecting, camp out, learn bushcraft, put up hammocks, escape from the world. Eventually you could either sell it and give the kids the money or put the land in trust for the next generation. It won't be the best investment but it sounds like your children are already financially sorted.

This is a GREAT idea!!! Dcs are very outdoorsy and they would definitely benefit from this too. And in theory we could all enjoy it and it keeps its value too. Do you where we could find this? We are in the south west.

I'm jealous.

If it were me I would put it into a house deposit for each child and rent them out to pay the mortgage 🤷‍♀️

Not this again. There are no tax implications to gifts of any size in the UK, unless the person dies within 7 years of the gift in which case there might be an IHT liability (calculated on a sliding scale)

how many kids do you have? If 2 could you use 50k each to buy a small property wherever they go to university? They can live in it rent free and charge rent to friends who live with them to cover the cost of the mortgage.

Cool, Something for them to look forward to when they're in their late 60s.

Money invested for a house deposit it a much more useful and gives them a good head start while they're still young.

If they put just £10,000 in now, assuming the children are about 10 years old, on a 7% return it would be worth about £250,000 when they draw it at 55. I certainly think that something to look forward to!

Cool, Something for them to look forward to when they're in their late 60s.

It’s crazy how much a pension for a DC can grow. They could end up with a million each to drawdown when they are 57, that’s certainly something to look forward to.

This is something I have been thinking about. They are under 10 and we have no idea where they will go to university.

Fuck me.
If I'd been given 100k 'for the DC' I'd have been bloody delighted. It would have taken a massive weight off our minds re uni costs.

Only on MN would people come out with nonsense like this. 🤣

holiday house
investment beats inflation
make some great memories

Holiday home in France - 100k will not buy you much unless you're up for a renovation, especially when you factor in agents and notaires fees. Then you have maintenance and annual taxes to consider. Holiday homes abroad are a PITA unless you plan to visit regularly - even then you either need to pay someone to maintain the place or spend your holidays painting, etc!

I wouldn't buy a btl or holiday home with money that was expressly given for children. Just put it in a investment trust for them (I'd split it 50 50) and then they can use for uni/house deposit/car or whatever when they are older.

I'm not sure why you need to buy something?

I'd just invest it for them for now.

@Jc2001

I agree - put it aside for a house deposit for each of them. Pensions are way too far down the line, they’ll need more help financially when they’re younger and looking to set themselves up

Definitely do this OP. What a lovely idea.

Have a look on rightmove and choose the land option.

This! I can’t understand why someone would attach that condition.

A couple of ponies?

@Tristani just fyi 🙂

https://www.onthemarket.com/farms-land/woodland/south-west/