Inheritance 700K....equity investment for growth for children or other options?

[mids2019]

I have recently received around 700K from a n inheritance at the age of 50. I have 2 children and in discussion with a financial advisor was given a ball park doubling figure of 8-10 years through investment funds.

We were ultimately wanting the money to support the children in future and we would be looking at 1M+ when 60 and the children are at university and starting jobs.

We own a house and are simply not that into status and luxury goods (pretty frugal really) so it initially sounded a good idea to use the money to support the children but a million may be more than needed or perhaps wise.

Also on the IHT front we can start to gift but the money becomes under th control of the children at 18. Again is this wise? The children are seemingly becoming a little more mature about the concept of many and how to be sensible but who knows.

Has anyone else faces this situation and what is your philospophy?

We have pensions and some savings of our own to support us.

What a lovely position to be in! Though I imagine it has followed a bereavement, for which I am sorry.

Depending on the age of your children, university is very expensive - you could intense a chunk of it to cover their rent and living costs for that (if they want to go) so that they don't need to burden themselves with student loans.

Then - if you don't want or need to use any for things like holidays/home improvements - invest the rest. I'd be wary of anything which would result in an 18 year old suddenly coming into a significant sum of money as it is rare that they are mature enough to be responsible with it. You could put it in trust for them, but that comes with a layer of taxation you need to understand fully before deciding if it works for your family.

*you could ring fence (not intense!)

Considering similar options with a FA atm, for the same reason

My priorities are:
Pay uni fees
Create house deposits for both DCs
Lock the DCs house deposit money away in funds until they're at least mid to late 20s
Improve my pension and retire early
Spruce up current house in preparation to sell it
Use some money to take time out of work to downsize next year

A good FA should help you work through different options and model the different scenarios

Unfortunately I'm in this position financially for very sad reasons

Yes it is bitter really these considerations and a little morbid :(

I feel I have no one to discuss this with hence the MN post. Good to have some postiv e responses .

Look into a 'deed of variation'. This would allow you to pass the money direct to your children (to be put in trust or whatever you choose) and never have it treated as part of your own estate. It basically skips you and goes to your beneficiaries, as if it had been left to them in the first place.

thanks for all the advice