WWYD

[mamasr]

I will soon be coming into a rather large amount of money however, I am not sure how to spend it.. DP wants to clear the mortgage and whilst I first thought this was the best idea I'm now having second thoughts - would it be best to invest into another property and rent our existing house, buy another property with the aim to improve & re-sell, start a new business etc.

I am just thinking of options as the current home we live in is perfect for now but it is just our first home and as we get older and have more DCs i'd like a larger house. We are still only young and I don't want to make any wrong choices.. Any advice would be gratefully received!

Are you married and is your house owned in joint names? If this money is solely yours I would invest in something that is also solely owned by you - I'd probably buy a property to do up and sell or rent out.

No we are not married yet (my choice as I want to wait until i'm 27ish and I do foresee us getting married) but yes the house is owned in both of our names (although I paid the deposit DP pays mortgage month to month and we share monies/bills etc)

The money will be a gift from my dad so yes it is "mine" and maybe this is why I am having doubts about paying off the mortgage as I don't want to end up feeling stuck in this house.

Get your dad to put it in a discretionary trust and then the trust can 'loan' you the money. Any issues, the trust can recall the money as a debt. The money is not yours, it's the Trustees and for the benefit of beneficiaries. It also helps with estate planning in the long term.

The trust should be wide in its beneficiaries and not be in excess of £325k. Use multiple trusts if you breach the NRB (nil rate band) limit.

It will be a chargeable lifetime transfer for your father so you need to get advice, but depending on the amount I wouldn't suggest a gift.

It's a protective measure and will not be detrimental to your partner, it will however afford you some protection. (trusts can be challenged, but it tends to put people off). It?s also not your ?fault? what your dad decides to do so it may be easier than having to separate your finances from your partners under your own steam.

Sorry brief post as busy, but seek some advice from a specialist. I would contact this company www.siep.co.uk/ they can?t do themselves but will have a recommended adviser they can suggest.

You have to think ahead , what if you and your partner split and you have paid the mortgage off ? He will be entitled to half .

I too would invest in something soley for myself .

Thanks for the advice, i'll be sure to look into it this week. If anyone has had any past experiences of this sort of thing i'd be interested in knowing what you did..