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Original poster

DH about to inherit largish sum, what to do.

41 replies

Alfieisnoisy · 18/05/2017 14:24

So..as the title say, my DH is about to be gifted just over £100k. To me this is a massive amount of money and it's far more than we have ever had.

Just don't know how to deal with it or what to do? It's come out of the blue but they sold their old house which has been rented out for some time and are giving a lump sum for to each child. The sum will be going into a trust fund which DH can access immediately.

It's not enough to buy a house locally and I need to remain in this area as my son is autistic and all his support is here.

We have had several discussions about this money as it worries me. DH isn't very good with money and it can burn a hole in his pocket.

So plan is to pay off any debts...not many thankfully...less than £5k.

We will also update my car (I only paid £100 for it and it's on it's last legs).
DH's car which he uses for his business is also needing work and also very old. So he will update that...neither updated car will be new.

The house needs some work...new flooring in the living room as the carpet is at the end of it's life and we will have a new bed.

Beyond that though we will be looking to save the money. DH doesn't have a private pension. We live in social housing as our income is not that high so there will be no new kitchen or bathroom because we are not allowed to do that.

There is already provision for DS in his adult years (thanks to my in laws) and we want to add to that ideally.

Would a financial advisor be worth seeing?

What I don't want is for DH to squander the money. I think the best idea is to put as much money as possible into an account which has limited access. That way we can take a percentage to do the things DH wants to do but the bulk will be secure. Or can trust funds be altered to allow for this? Anyone know?

OP posts:
AndNowItIsSeven · 19/05/2017 14:39

Sorry missed the " trust " part, it won't count as savings if the money is in a trust.

LightYears · 19/05/2017 14:40

OP's MIL has already sorted the tax out.
OP, knows about the benefits too.

AndNowItIsSeven · 19/05/2017 15:09

LightYears no mention of op understanding the UC savings threshold. Hopefully she does as her dp is a trustee and a benefactor.

LightYears · 19/05/2017 15:26

OP said she claims a small amount of Tax Credit which isn't means tested.

Original poster
Alfieisnoisy · 20/05/2017 09:31

I strongly suspect that this is a way of my in laws avoiding inheritance tax.

We don't get anything in benefits beyond a small amount of tax credit and I am happy to not take that.

Was looking through some old posts yesterday under my previous nickname and found one from 2007 where we were broke, in a house with broken down heating and I was bloody freezing and tearful. I would have given anything for this at that stage. DH was working away a lot at that time and it was so cold I was putting DS in bed with me to keep him warm. Sounds almost too bad to be true....but it was true.

Believe me when I say that I know and appreciate how fortunate we are to be receiving this. It will allow us to do a few things we need to do...now I know more about the Trust and that DH will have to be a bit careful with it I feel happier.

OP posts:
MrsWooster · 20/05/2017 09:36

IF A. We are in a similar situation and ours has advised pension- currently govt are adding 20% to anything that you put in a pension, which you can take back out as a l7mp sum on retirement. Advice like that is too good to miss. Also maybe consider investing in a holiday home which you can have regular,, familiar hols in and also perhaps rent out to friends to cover costs and which will appreciate as an investment...

Babyroobs · 20/05/2017 11:57

If it is their way of avoiding inheritance tax they need to make sure they don't die within 7 years !!.
My dh has just been stung with a £33k ( London house prices)inheritance tax bill and gifts made to us by our in laws were counted in the amount..

Original poster
Alfieisnoisy · 20/05/2017 12:57

I hope they won't die within seven years, I would be heartbroken if so and not to do with money but because they are lovely. The avoiding of inheritance tax is an assumption by me though and I could be wrong.

OP posts:
Suebromley · 20/05/2017 14:25

Firstly its your husbands inheritance and sounds like you already spending it!?

My dh was much more financially astute and would decide what to do with it and vice versa if it was my inheritance

Original poster
Alfieisnoisy · 20/05/2017 15:19

Definitely not ME spending it...not sure what I have posted which would make you think that. It's DH looking at cars etc and talking about things which concern me as I don't want him to fritter it away.

I think I have been clear on here that it is HIS money but it's out of the blue....he was not expecting it. And yes...it will impact upon us as a family.

OP posts:
dontcallmethatyoucunt · 20/05/2017 16:28

If it's in a trust, the trust should consider LENDING not giving the money to the beneficiaries. This creates a debt on your estate. A good IFA would know this. It doesn't stop you using the money, but might help with benefits. ...

fiftyplustwo · 20/05/2017 16:35

I think you replied to the question yourself: "DH doesn't have a private pension." Grin Talk to a professional and if you don't understand what they're on about, because it's mumbo-jumbo to you, it's probably a bad idea. It must make sense, be common sense.

MrsCoulter · 20/05/2017 16:39

I guess a BTL doesn't need to be local to you. 100k is enough to buy a terraced house outright in many places. Rent it out via a letting agent.

BarbaraofSeville · 20/05/2017 18:44

I'm not sure about BTL - it can be quite hard work/stressful - certainly not easy money and house price inflation that makes it worthwhile often isn't there in the places where you can buy a terraced house for £100k. Prices are more or less the same as 10/12 years ago, before the crash.

OP, I know you worry about frittering the money, but you might do well to earmark a portion, £20k ish? to be available in the future for things like replacement (sensible and reliable) cars, white goods replacement, other major purchases. I would not class this as frittering but it sounds like you don't currently have a lot of spare money, so it would make life better and less stressful to be able to deal with this sort of thing without worrying about where the money is going to come from.

violetcloche · 21/05/2017 15:51

£100K could be a huge deposit. Surely, there is a 2 bed property you can buy without moving to the other side of the country? How big a mortgage can you get with your income? If you give us an estimated house budget and the rough area of the country, perhaps MN can propose some suggestions for you to consider.

Olivo · 21/05/2017 16:44

Interesting that some posters see it as your DH's money. Surely if you are married, it belongs to both of you and you make the decisions together?

I agree with seeing an independent financial advisor. I hope you enjoy spending some of the money too!

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