What would you do?

[pollyglot]

Say you had inherited a really substantial amount of money. You are retired, have a modest but reasonably comfortable house, some shares, and a holiday home which returns a good rent. Interest rates on investments are crap. Would you:
a) Use, say 60% of the money to buy the dream home you always wanted, and give a generous amount to your kids
b) Split the money between your and your kids (who need help, having young families)
c) Try to find something that will return a good income that can benefit everyone, but won't give anyone a lump of capital right now.
d) Another option?

Children struggling - then mainly to them

If not... dream house and then rest for them

Probably a

Thanks for the perspective, Jrose. A financial adviser is obviously the first step, but mothers' opinions re always valuable.

Dream home but be wary of it if it means increased bills - council tax, water, heat & light...

Generous to DC is always good as you get to see them benefitting from it.

A

Help out the kids then when Covid is over.go to all the places in the world I want to visit

A

Kids have to build their own wealth; you have provided them with an education, food, home,etc. Time for you to enjoy it; they will inherite it later on.

Dream home, sell your home to bump up savings and give smaller amount, maybe 15-25k to dc to help them out. I don't think it's of benefit for adult dc to receive huge payouts. A bit of help sure, but working hard is an asset and they will benefit down the road. Also with a holiday home, I'm sure they also get some free holidays. That's a huge help too!

I'd say it depends how old you are.

Retired. It 60 or 80?

If you're younger dream home then help the kids. Older then help the kids.

They're probably already 'working hard' but this is a different world now that it was even when I bought my first place 20 years ago for £26k! I'd never get on the ladder now if I wasn't already and I work bloody hard!

I wouldn't see my kids struggling if I could help.

I wouldn’t necessarily buy a bigger house but I would buy a smaller house in a much better area , walking distance to loads of things, ie. a lovely 2 bed flat in a fantastic area of London. Then rest to kids

Depends on kids..if they are lazy and taken wrong path(s) then why bail them out? Small contribution and then they'll inherit once you pass on.

I’d do whatever makes me happy . I’d only be willing to help my children if they helped themselves first eg I wouldn’t be giving them money if they weren’t generally good with money or were living way above their means . If they’d lost a job or couldn’t work because a child was unwell etc then I’d help them .

Thanks so much for your replies.

A. Put yourself first.

I’d consider a dream house within reason, eg larger/more comfortable bungalow and not getting a country pile at 80 etc. I’d probably get rid of the holiday let so there’s one less headache in retirement.

I think that children or grandchildren would probably get a bit of money but not sth to fritter away. Perhaps a bit towards their pensions or trusts for grandchildren so the money can be invested and help them onto the housing ladder etc.

Interest rates on investments are crap.

I’d also say that this is nonsense. Savings have interest rates (which are crap). Investments can go up or down in value but in reality, a well invested pot would see a decent return.

I would look to do what will minimise inheritance tax, actually any tax. Is ypur dream home ££££ - what will ongoing costs of running be and inheritance be?

I would give to DC and GDC because i would want to see their lives made easier and them enjoying the money.

Be careful with financial advisors, get excellent tax specialist and solicitor.