money inherited

Options
buddyholly1
buddyholly1 Posts: 3 Newbie
edited 28 August 2014 at 11:51PM in Savings & investments
Our eldest son died recently,We have already received around £80000 from his estate and there will be more when his house is sold,my wife and I are 70yrs old, we already hold £80000 in two jupiter merlin accounts and she has £8000 in an AXA bond, I have a Santander 123 current account and my wife has an ordinary account, we have no mortgage and our house is valued at around £500.000, my question is, what do we do with the £80000? our youngest son has a £90000 mortgage, do we pay off some or all of his mortgage or take over his monthly payments? what is the alternative? we don't want any new long term investments for ourselves,our youngest son is 46 ,is single and has a 13yr old son.
Advice please.
Buddy

Comments

  • CLOUDS
    CLOUDS Posts: 15 Forumite
    Options
    My condolences on your loss. I would ask your son what he would like. Failing that I would take over his payments for him... may be subject to an early payment charge if you paid for his home in full? However most mortgage companies allow you to overpay some extra each month with no fee. But I would definitely ask what he would like... otherwise I would put 30000 in premium bonds for your son and 30000 for your grandson and with the extra 20000 I would take yourself and your wife travelling. ... around the world. If that's not what you want then how about a timeshare? Or a boat? Or a beach hut.... although I think these are more than 20000. Log cabin somewhere? Or how about sponsoring a childs education..... or donating some to make a garden or for a service needed in your area?
  • Your_Hero
    Your_Hero Posts: 883 Forumite
    Options
    You ought to gift some of that away or all if you don't need it. This will help towards the potential IHT issue that's building up, particularly as house prices have risen a lot and will probably continue to rise, yet the nil-rate band (NRB) is frozen at £325,000 per person.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • eskbanker
    eskbanker Posts: 31,316 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    CLOUDS wrote: »
    otherwise I would put 30000 in premium bonds for your son and 30000 for your grandson and with the extra 20000 I would take yourself and your wife travelling. ... around the world.

    Not sure if the recommendation to put £30K into PBs was driven by a view that this is the limit or just a random number but the maximum holding has been £40K since June....
  • xylophone
    xylophone Posts: 44,530 Forumite
    Name Dropper First Anniversary First Post
    Options
    You might make gifts to your sons and your grandson.

    Does your grandson have a JISA? https://www.gov.uk/junior-individual-savings-accounts/overview

    You might consider contributing to it.
  • vectistim
    vectistim Posts: 635 Forumite
    First Anniversary
    Options
    If you want the money to go straight to your other son, would it be possible to get a Deed of Variation so that it doesn't become part of your estate?
    IANAL etc.
  • atush
    atush Posts: 18,730 Forumite
    Name Dropper First Anniversary First Post
    Options
    Yes, a deed of variation would take it out if your estate so if gifting it to pay off mtg or anything, that is what I would do
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.6K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards