What to do with inheritance money?

atush

I love Florida- I have a home there (i am american and am resident there for US purposes) but I have to say some brits are completely Disney obcessed. I go to a park every other year, but the gulf coast beaches I could enjoy everyday.

But the OP needs help deciding how to save/invest not spend. If they want to spend, they will know how to do it and what would give them the most satisfaction.

So, do get back to us once you find out where the money is invested now.

xylophone

I take it that by the "Children's Bond" you mean that one child has a CTF - no problems tax wise about parents adding to this. If the other child was not eligible for a CTF, then he might be for the JISA http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/AnintroductiontotheChildTrustFund/DG_193690

Otherwise be careful about interest arising on parental gifts to children under 18 see http://www.hmrc.gov.uk/tdsi/children.htm

JuniorSherlock

relaxtwotribes wrote: »

OK, JS, but let me refer you back to the very first sentence of the original post. Now, ask yourself if FIL is giving the money so you can squirrel it away to use in 25 years time. After all, if he has it in bonds and investments now, he could simply keep it that way. Could it be that he would rather see you enjoy the money whilst he is alive? And, if I might be so bold, I doubt that he is giving you his last penny, so there is probably a fair bit coming your OH's way sometime in the future.

It's a little more complicated than that but I simplified it here because I was merely asking for advice on how best to use the money. There are other siblings and some of them have already received patches of land and benefitted from their parents in other ways. To make it fair, the PIL decided to give those children who had not already benefitted, some of their share of the inheritance so they could make the best use of it. There is also a sense that they know we have little ourselves so we will put some aside to make our lives a little better - like a decent car (keeping the old banger for me to just around in), topping up our own ISAs and having a cheap family holiday this year. Also doing it this way means that we don't have to deal with inheritance tax issues.

Yes there may well be some more when they do die, but it may not be as much as that as the rest of the money is tied up in the house and land that they haven't already given away.

I take it that by the "Children's Bond" you mean that one child has a CTF - no problems tax wise about parents adding to this. If the other child was not eligible for a CTF, then he might be for the JISA http://www.direct.gov.uk/en/MoneyTax...ISAs/DG_199672
http://www.direct.gov.uk/en/MoneyTax...Fund/DG_193690

Yes my youngest has a CTF and the eldest doesn't. I am looking into childrens savings account on this site and quite fancy the Halifax one at 6%. I shall read the other link you gave. It seems that any kind of savings or investments are fraught with complications tax-wise and I could do with a quick lesson on how it all works. So I should really set aside a few hours to navigate round this site a bit more taking notes.

I'm sure Florida is lovely by the way but we are not particularly Disney fans and luckily it seems our kids have adopted our non-extravagant lifestyle. We've never visited Butlins, CentreParcs or any other 'family holiday destination'. We do holidays on a budget, doing our own thing and we always end up having a great time. The Premier Inn/Travelodge offers are also worth grabbing as to the kids, a night or two in a hotel in a different location is a holiday in itself. You don't have to surround them with Disney characters, funfairs and 24hr entertainment. Just time spent with each parent is often what they crave the most.

I appreciate every single one of you taking the time and effort to reply and you have made a difference, trust me. I will report back on what the bonds and stocks are once we receive them and we will invest carefully - no new cars, no bigger houses and no trips to Florida

Cheers all!