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?

how bout 50k in premium bonds each

Ooh some lovely options there OP!

Why is he not consulting his financial adviser as to the best way to pass this on ?

Sounds like you are well set up financially already, so no need to put it into holidays etc...
I love the idea of buying a plot of land, especially woodland 🌳

We'd buy land. Outdoor space is hugely beneficial to kids.

Agree re £100k for university fees. My two children have left with £50k debt each and seeing the way they are will be two people who will actually pay it back at massive interest rates to cover people who don’t! If we had a spare £100k I would pay the loans off now

I’d buy a camper van for weekends away and out the rest in a uni fund.

A savings account for their uni and house deposit

Just put it in low risk investments. Then when they finish uni they can either use it to pay off student loans or keep the loans and use it for something else.

Don't get a buy to let. They are loads of hassle and no one knows where the market will go in the next 5 years.

Also this may be a pedantic point. But your father isn't giving you 100k. He's giving your kids 100K. Why doesn't he sort out what to do with it ?

A small parcel of land and a campervan. If your kids are outdoorsy you'll have a few years of adventures and then when they hit the teen years and want friends round you have land for parties, long weekends.... You could build a temporary structure for shelter for the family parties.....

Put it into an ISA tracker fund and then use it for uni/house deposit when older. That will give them the best start.

Woodland sounds great aged 10, but may not be appreciated at 18.

Maybe take £5k in total for a great holiday.

Those woodland options look amazing, especially the one with a shelter a d a woodburner. I'd definitely do that.

Give £1000 each to the first 100 posters on this thread

Just posting twice in case you do do that

And another for luck

Are they planning to go to university? If yes, I’d split it into a trust fund that you solely use to pay uni fees and/or use for accommodation fees to ensure they leave with as little debt as possible?

The wood idea is good. The woodlands.co.U.K. Insta sometimes has ideas for small patches of woodland.

You could sell it when the kids are adults to put towards the house funds.

Honestly as someone with inherited/gifted land & holiday homes, it’s a right pain. That doesn’t mean we’re not grateful for it but - you feel like you can’t go to other places for holiday or you’re not getting the value of the holiday homes, there’s a level of maintenance that’s ongoing & just a hassle & there are a number of associated costs that you just can’t avoid. The land needs a level of maintenance that again is quite onerous & another chore, again if you aren’t using it you feel guilty and there are associated costs.

We’re in the process of getting rid of a lot of it now as it’s just not compatible with our lifestyle. You also have the associated emotional connection that makes it all a lot more complicated.

Invest in the stock market. Premium bonds also a good shout if dc don’t already have them. Have the cash there for them in future without adding to their responsibility load. A much better gift.

@beetr00 this is exactly what I needed! I will discuss with my dad but this looks great and dcs will love and enjoy it.

Yes to the land!!
What a wonderful idea. And so very wholesome. Do it!!

Why?

He's saying he wants to give the kids the money - but nobody wants to lob that kinda money directly at kids.

It's not enough to go to the expense of setting up a trust fund.

And he's effectively letting the mum choose whether it's equal shares or not, and how to dispense it.

It avoids the other issue of grandparents giving money directly to children and annoying the parents.

I would ask 2x questions of @Tristani .

1. If the money's not going to the children immediately, then you could effectively invest it in your mortgage and give them more later (principle plus interest)
2. Would grandpa like the kids to see the benefit immediately - do they already have a close relationship or is he trying to create a better one as he gets older (tbf, a gift does help there!).

I agree with PP. Really excellent holidays once they are old enough to appreciate them - a safari, a trip to US, NZ, Oz or Japan.

Some cultural trips maybe - several city breaks to places like Rome, Paris, Venice, Vienna etc.

I've used money from family to give DC a chance to do things we couldn't usually afford - seeing West End shows, taking them (once they are old enough, as above) to Michelin starred restaurants, or to top sporting events and festivals and gigs.

You could set some aside for long haul school trips later in their school life - sports or music tours, ski trips etc.

You could also use some to remodel their bedrooms as they grow older so they have comfortable welcoming spaces to hang out with friends.

Don’t do this.

Use it to start a buy to let portfolio so they have income when they hit their university years

Education but with school fees looking like £20k + Pa min for the coming years that's only 3 years per dc. 6th form school and good uni halls and gap years?

I like this idea too. Only thing to check is if there are public footpaths through it. If there are, you are just owning something you already can access