Where to park funds to be used within 10 years?

[Linguaphile]

DH will be receiving some inheritance money and we would like to save it for our children (education, house deposit help, etc). We can’t put it in their names because they have American passports, which makes the tax situation tricky. If you had 50-75k and wanted to park it someplace where it would earn decent interest but you could otherwise forget about it for maybe 10 years, where would you put it?

I should add, we have no interest in being landlords, so property is not an option we want to consider.

Vanguard ISA or a general investment account invested 100% in Global All Caps.

Have you got us passports too? As you might struggle with s&s Isa if so and interest is pitiful on cash.

If not, I would each max out on s&s ISA and invest in a global fund.

DH is the only one of us without the dual UK/US citizenship (he’s just UK), so it would have to all go under his name.

Agree with investing it in a global tracker. If you have specific dates that you need to get the money back by then keep an eye on the stock market and start converting some to cash in the run up to needing it. Otherwise, you can just wait out any dip in the market and withdraw once the market has recovered.

Open a stocks and shares ISA and general investment account. Put £20,000 into the ISA and the rest in the general investment account (GIA). Each financial year move £20,000 from the GIA to the ISA (look up "bed and ISA"). You don't pay any capital gains tax on stocks held in an ISA or income tax on dividend income. Also look into capital gains harvesting for the money held in your GIA - the annual capital gains tax-free allowance is currently £12,300. Capital gains tax-free allowance is per year, so if you sell stocks and shares that have increased by £12,300 since you purchased them every year for 5 years then there's no CGT to pay. If you sell none of them for 5 years and then sell them all in one go (£61,500 = 5 x £12,300) then you have to pay CGT on £49,200 (£61,500 - £12,300). CGT is 10% for lower rate tax payers, and 20% for higher rate tax payers.

I'd recommend heading over to the Money Saving Expert website for lots of information

Agree with investing it in a global tracker. If you have specific dates that you need to get the money back by then keep an eye on the stock market and start converting some to cash in the run up to needing it. Otherwise, you can just wait out any dip in the market and withdraw once the market has recovered.

Open a stocks and shares ISA and general investment account. Put £20,000 into the ISA and the rest in the general investment account (GIA). Each financial year move £20,000 from the GIA to the ISA (look up "bed and ISA"). You don't pay any capital gains tax on stocks held in an ISA or income tax on dividend income. Also look into capital gains harvesting for the money held in your GIA - the annual capital gains tax-free allowance is currently £12,300. Capital gains tax-free allowance is per year, so if you sell stocks and shares that have increased by £12,300 since you purchased them every year for 5 years then there's no CGT to pay. If you sell none of them for 5 years and then sell them all in one go (£61,500 = 5 x £12,300) then you have to pay CGT on £49,200 (£61,500 - £12,300). CGT is 10% for lower rate tax payers, and 20% for higher rate tax payers.

I'd recommend heading over to the Money Saving Expert website for lots of information