investment from inheritance

fergie15

hi I am about to inherit around 138k. I was looking to buy a house to let out whichwill be around 100k but I am not sure whether to go for it myself or go with a rent management company. Do I go furnish or part?
I wanted to put this in mine and my childrens name (basically so my husband can't get hold of it just in case.....) is this possible?
will be paying of the credit cards and possible looking to extned my house. Does this seem frivolous to spend it in one go? It is pretty much the only lump sum I will evey get so want to be wise with it as much as I can

xylophone

and my childrens name

If the children are minors, the property would need to be held in trust.

Are your children minors? See http://www.hmrc.gov.uk/trusts/types/minors.htm

If you owned some portion of the property this would count as a marital asset if you divorced?

In your position I would take expert legal advice.

innovate

Seems you are a newbie to BTL, and should therefore first investigate what is involved. It think there is a house Buying board on which BTL experts can give you some help.

As you already have a property, buying more property means putting all your eggs into one basket. You might do a lot better to diversify into investments, and move you money gradually into S&S ISAs and/or a SIPP. This would strike me as way more sensible than more bricks and mortar. You would have to learn about investments, too, but that can easily be done by reading a book or two, or working through some websites.

As to having property in children's name - I don't believe you can register any property in a minor's name. You might be able to put it into trust, or you can make a will that defines what will happen with assets in your name. A will will probably not protect your assets in a divorce, though.

atush

i agree with t he above, property is not where to go as a newbie.

I'd look at paying off debt, setting up a good emergency cash reserve, investing in pensions and other equity exposure all before i'd look at BTL.

kidmugsy

Go to a solicitor and get him to explain to you how you can execute a "Deed of Variation" on the will so that the money doesn't come to you but instead goes into a discretionary trust with you and your children as the beneficiaries. You'd want to be one trustee; do you have a sibling who could be the other?


Then weigh up whether you'd like to do that rather than have the money in your own name. It may not be the answer for you, but if you don't trust your husband it's worth considering. You could still borrow from the trust to pay off credit cards or whatever.