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Original poster

Potentially life changing inheritance - anyone experienced this?

46 replies

bitclueless · 30/09/2011 13:56

What did you do with it? did it allow you to do something you had always wanted to or did you just carry on with the life you had before? How did you decide? Did you find anywhere to give good advice?

We are all about to inherit substantial amounts (including my 10 and 8 yr old dcs). I am really not sure what to do with it. The only ideas I have had so far are to buy a new computer and some clothes!

I am dissatisfied with aspects of my life. Bit fed up with work etc. However the thing I lack most is time, not money. Am also a bit of a tight wad frugal dougal so just can't get my head around it at all.

Its not enough to just give up work and live on the proceeds (not in our normal style anyway) - but it is of the order of a house worth. each.

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Original poster

bitclueless · 30/09/2011 15:06

I suppose the unsettling thing is that it does throw up all sorts of questions about what i think I am doing with my life that is worthwhile. when you have no option but to keep on working (or at least that's what i told myself, though I guess in theory I could live off dh, in practice it has never really been something we thought was ok to do) then you don't have to think too hard about why you are doing it. But now I think, well I COULD do something different. So why not? Too bloody scared that's why!

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Original poster

bitclueless · 30/09/2011 15:08

I love the idea of money buying time. We already do that to an extent (both work 4 days). I would love to try and use it that way but the bloody job gets in the way!!

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HonestlyBanking · 30/09/2011 16:57

Have dealt with many people over the years who have won lotteries, inheritance, sold businesses etc. First think is spread the cash about in safe places. That means different banks so you get the FSCS limits. Secondly do nothing in a hurry. By all means speak to IFAs, but fee based ones also get get commissions as well. Would suggest speaking to your lawyer and accountant for advice too. Depending on how much it is (>£500k) Private Banks might be worth a look as well.

Take your time. Think very carefully. You need several months (at least) to get your head straight on this sort of thing. There will be a queue of people ready to take money off you so be careful.

Good luck!

Honestly Banking

CogitoErgoSometimes · 30/09/2011 17:28

@Honestly Banking.... are you some kind of business that you have to sign off with your name every time???

HonestlyBanking · 30/09/2011 18:18

Nope, perhaps a cultural thing and just easier than name changing every time. Risk being fired by employers as talking in honest terms about the industry if real name was used!

Alouiseg · 30/09/2011 18:19

Leave HB alone, I think that he/she/it has given some top advice recently.

fluffles · 30/09/2011 18:28

personally i would pay of my mortgage and never have a mortgage again and i would save the DCs for exactly the same purpose.

only needing to earn enough to cover bills, food and spending opens up enormous opportunities to follow passions or low-paid jobs (art for example, or writing or charity work, or freelance work where you pick and choose your jobs)...

fluffles · 30/09/2011 18:29

posted too soon... also wanted to add that usign the money for rent and mortgage free living i think also stops it being frittered away or spent on materialistic consumer goods.

Almanzo · 05/10/2011 19:54

We inherited a house worth about 500k a few years in very sad circumstances. Like you we weren't really sure what to do. It was almost 'too much' so we sort of hid behind our grief and held on to the place even though it was costing us about 250 every month to keep it empty (we did use it for visits but just couldn't say goodbye to it and the memories of the person it belonged to)
This year we were ready And have let it out long term to a lovely family. We finally know what to do with the extra money and are glad we didn't rush. I guess I'm saying it takes a long time to get used to the idea but your plan will form. I am quite sure you don't have to wait as long as us though!

HonestlyBanking · 07/10/2011 09:30

Caution here on using IFAs for tax planning. Most IFAs are not qualified to give tax advice. They may be qualified to show you tax efficient investments and structures, but this is really tax awareness and not advice. If they do give you tax advice and are unqualified you will have little recourse. Their professional indemnity insurance won't cover this also.

There is a good summary on where to get good tax advice and the qualifications to look out for by Which: www.which.co.uk/money/tax/guides/tax-returns/choosing-a-tax-adviser/

In general terms it's worth paying for the right advice - but shop about - you are the customer.

Original poster

bitclueless · 07/10/2011 14:56

Thanks HB. Its hard to know where to start really. We've got a solicitor, but that's it. I'll give that link a look. Presumably we don't need a solicitor, tax accountant AND an IFA - would one person be able to do all jobs?

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Original poster

bitclueless · 07/10/2011 15:01

And yes, it is somewhat overwhelming. I know its a nice problem to have though. Just finding it a bit, well, weird. Definitely good advice to take time!

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HonestlyBanking · 07/10/2011 20:13

If it's a large sum you will need specialists in all areas. Anyone claiming to do all won't be able to cover properly. You will certainly need tax advice.

Managing large amounts of money can be a full time job! That's why some people choose to 'outsource' this to a private bank or a family office.

Good luck!

Original poster

bitclueless · 07/10/2011 22:59

Well, it's large to me (though we still don't know exactly what we're dealing with), but no doubt relatively trivial in the world of high net worth clients...I certainly don't want to spend my whole life sorting it out- I have after all still got a job to go to!

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Auntiestablishment · 16/10/2011 21:51

I know someone this happened to: they eventually put it with one of the wealth management companies as didn't have time/expertise to manage it themselves. IFA wanted to charge shedloads for nil/little added value so they got bypassed.
Consider your own wills: they may need changing. Solicitor will be able to assist there.
Yes to tax advice - the last thing you'd want is to find yourself with a liability you weren't expecting & needn't have incurred had you had advice. Also you might have to do tax returns if you didn't before.

sarahtigh · 17/10/2011 14:38

first high interest deposit account and I would pay off mortgage, if you are self employed a years salary as cash

really sensible of Dh grandfather to tie money up until they are 25 not 18,
personally i would not tie Dc money in a pension they may need money for a long course vet/ architect etc

investment wise as you said could buy agricultural land also precious metals art antiques but obviously need good advice though price is really high at present, if ultra cautious government bonds

pay off all debts and then invest in pension, i think maximium pot is 1.5 million each, you could afford decent own occupation permanent health insurance

you need to re-write wills to avoid as much inheritance tax as legally possible, and appoint good guardians for your children may be not the same person to look after them who looks after money

Consider what you want most in life, money can not buy happiness, love or health ( it can help to pay for care though)

Original poster

bitclueless · 18/10/2011 21:54

thanks for further ideas. what are 'wealth management companies' and don't they cost a lot too? Its all a bit of a minefield - I'm not clueless by any means and don't want to spend a lot of money on advice that I can read in a book!

All a bit overwhelming. The amounts for the dcs are something I feel quite uncomfortable about. We don't want to send them to private school for example, but what if when they grow up they wish that we had - and they will know that there was enough money left to them to be able to fund it?
Hmm, I really wish we had been asked to be honest.

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Original poster

bitclueless · 18/10/2011 21:56

Pension is definitely a high priority, however we can only invest as much as we earn in any one year, so that is actually the limiting factor to how much we can put it, rather than the overall limit to the pot. We'll definitely end up paying a lot of tax on it!

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Auntiestablishment · 19/10/2011 17:36

Wealth management companies: examples are St James' Place, Brewin Dolphin & Barclays Wealth. They do charge, but they do all the admin as well as the stock-picking and whatnot. Take a look & see if that's the sort of thing you're looking for: they talk to potential clients (whether it's for you would depend on amount, what your financial goals are, your competence/confidence on money matters, etc etc).

Children - why not ask them what they think about private school?

Pensions - complex area, take advice which includes consideration of tax.

Also, echoing the comments on taking your time. Don't let anyone pressure you into a decision, wait til you're comfortable with your plans.

lisad123 · 19/10/2011 17:48

If it were menu would put my girls in private school, get a house and then live life as we do now. I gave up work last year to care for my girls who both have SN but tbh I'm so busy I don't miss work. I support o e charity as a trustee, mentor a young man with ADHD and run a support group.

HonestlyBanking · 19/10/2011 20:30

Be careful with Wealth Management Companies. Every bank and IFA calls themselves 'wealth managers' now. Coutts bank (actually RBS premier with nicer cheque books) is probably the best known of the Private Banks, whereas some of the smaller ones are better. Brewins are a different animal, more a pure play stockbroker and StJames Place is really an IFA outfit with good branding. They will often claim to do 'everything' for you. In our experience they are very good at some things and not others.....

Perhaps as important is to find a private banker or investment manager whom you like and trust. Get some recommendations. They do cost, but you have to pay for somethings in this world. Alternatively a really excellent IFA could work. Watch the charges again.

In the world of finance you get what you don't pay for!

Good luck!

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