If you were left a very large amount of money...

[lilyplant]

what would you do with it?

you asked what i'd do

and yes, i'd prefer to be paying a mortgage than rent so if at all possible i'd use it towards a house deposit.

if that wasn't at all possible i'd buy a car that'd last a good few years, clear all debts and fill the tank with oil for the heating, put half aside as savings and if i had any change i'd use them as fun money (clothes, kids stuff, etc)

we recently got a gift of some money (not as big a chunk as yours but alot more than we're used to)... we payed off the credit card, bought a dining table and chairs and the rest is in our savings for when we need it.

itsmeolord's idea of doing a business course is a good one - you could probably fit that around the dcs and it would help you with a longer-term goal of setting up a business. It would help you both in terms of sharpening your ideas of what to do, and in terms of how to do it.

The benefits agency will ask where the money has gone if it goes to quickly.

We sold our house at 19 and went travelling for a year. When we came back and signed on for jobseekers they didn't believe that we had spent the money and checked bank statements to see where it had gone.

I think if you gave some to charity they would be rather suspicious that you had actually hidden it somewhere

Invest it, save at least half of it. Then go on a holiday to Lapland with the whole familly and stay in a log cabin in the deep snow.
It's my dream holiday, but FAR too expensive
If it was a ridiculous amount of money then I would pay off the mortgage and anything left over, give it as 'gifts' to local charities and individuals.
Main thing is to clear debts, invest then have fun!

hmm really, having read your posts, you just need to use it to LIVE on for a year or so

I don't think that in your position there is much else you can do

Maybe give yourself a treat (a gardener to sort the garden out for a few weeks?) but otherwise, you are just going to need to live on it

Personally I would do whatever I could to avoid not loosing your benefits.. if that meant some creative accounting then so be it...

Can you not split the remaining amount over the £6k that you are allowed between your kids?

Is that illegal?

I know its not morally right, but it doesnt seem right that because someone has left some money in a will that she should have to use it to live off for the next year... She might as well hand it all over to the government..

geordieminx - no creative accounting.

Now that she can afford it, it is her turn to pay into the system. The system is there to help those who would otherwise be in desperate straits. She is not, so it is time to 'pay into the pot' to help others in need.

lilyplant - I suggest you do things in the following rder.

First, pay off all your debts.

Second, put 6 months of your spending in a decent savings account with National Savngs as rainy day money.

Third, if you have any left spend some on yourself but on useful things such as things you really need for the house.

Fourth, if it is a large sum look at renting a property in a nice area that you can afford. Property is still far too expensive to buy.

Fifth, if it is a really big sum maybe put DCs through private school and buy an investmet plan that is guaranteed to pay the fees.

Do not go to independent financial advisors. They just want to sell you stuff to make a commission. Keep it very simple as above.

'Creative' accounting doesn't have to be illegal, it's as much about knowing what is possible - how about finding an accountant who really understands inheritance tax and benefits and seeking their advice on how best to distribute the money??

I could be completely wrong here, but surely there will be tax on the inheritance, in which case she is 'paying into the pot' ??

Also, and i could be off the mark here too, my understanding is you can open ISAs for your DCs, so if you put 4x£3600 they would each have some tax-free savings locked up, which can be added to, but shouldn't really be taken from (good practice) but could be withdrawn in an emergency. Then you'd have less than the £6000 threshold.

can't you put some into the children's Child Trust Fund?

You won't be able to touch it, but it will be tax free, and (hopefully) gaining interest until they turn 18.

Not sure how that would affect benefits. There's a limit on how much you can put in each year, but with 4 kids, you may well use up a lot of it that way. Also, buying some 'necessities' for your house could be good - could you take them with you if you moved later? Although you say your house isn't great, it sounds like you want to stay there for a while.

If there's any money left, you could keep just under the amount you're allowed to have ina savings account, the kind where you have to give 3 months notice, so that if you find somewhere nicer to live, and want to move, you have some cash to pay a deposit/buy things for new place?

20k sound slike enough to stop your benefits, but not enough to buy a house, start a business etc.

There MAY be some way of legally transfering the money to your dc's without you touching it. If it is put in trust for them, so you can't use it, it may well be tax free & not affect benefits. An IFA should be able to help you with this.

btw, sorry about your loss. I hope being able to do something for your dc's will help you, the idea that the money you get will give them a more secure future.

Yes some of the momey can be given direct to DCs by just asking for a variation in the Will. The money need never touch your account but £20k is not a huge sum and it seems to me to quite reasonable to have some savings and some spending on the house without affecting benefits.

thanks for all your replies

I do not mind losing some benefits just wondering how long it will last when the council tax, water etc in my area is so high.

its just very difficult because I escaped an abusive person who was harassing me only to be found againand hassled again. So far, since my last move, I have had no fuether trouble from this person, but was hoping to keep a few thousand pounds in case I was ever found again so I could use it on moving away

And there is a charity I have always wanted to help but never been ale to do before, but it looks like if I donate to them, then I will be accused of deliberately trying to get rid of it to keep my benefits. I would love to be able to come off benefits, I don't mind working, having done years of voluntary work before having children, just unsure how long I can last for and if anything goes wrong and I end up struggling financially before they expect my money to run out, will they refuse me benefits before a certain period of time as elapsed

which is what, the 6 grand? You seem to know a lot about this subject leninguido

You can go back on benefits as soon as you only have £6000 left

So if she was to go out and a buy 14k gold whatever would that count as having 6k left?

(assuming a round figure of 20k)

A will can be varied after the event (called a deed of variation) if all the beneficiaries agree.

you can't buy ISAs for children