Inheritance help

Mrsmiggins2018

Hi there,

My mum is due to inherit some money from Europe following the sale of my dear old granny’s home.

My mum is fortunately already mortgage free. She currently only works part time and is due to retire in 4 years time.

Should she get the money ‘over here’ before brexit and get it invested? Or should she invest it there?

Thanks

kidmugsy

It depends.

bowlhead99

Mrsmiggins2018 wrote: »

Should she get the money !!!8216;over here!!!8217; before brexit and get it invested? Or should she invest it there?

Thanks

Brexit or not, you haven't given us any indications that she is going to retire to Europe when retirement happens in 4 years time, so there seems little point in her building a portfolio of investments on the continent.

She can instead invest it with a UK-based investment provider in investment funds which hold shares and bonds and properties all around the world. Saving or investing it in UK products rather than overseas also allows her to make use of her tax allowances (max out her pension, ISA etc). She couldn't do that if she was investing the money in a foreign savings or investment product in a country where she isn't tax resident.

However if she is not UK domiciled and the amount is substantial, it might be useful to keep it overseas in terms of future inheritance taxes when she eventually passes on. Just for completeness If she's non-UK domiciled but would be considered domiciled in the future because of living here a long time, she could consider putting it into an offshore trust to protect against UK IHT, but that's only useful in certain situations and you haven't given us any indications that they apply, other than she had a mother living overseas.

Malthusian

Am I right in assuming your Mum lives in the UK? Is she planning to spend a lot of time in her mother's country? If not, there may not be any reason for her to gamble on the exchange rate by holding it abroad.

It would be a brave woman to gamble on Sterling falling even further (so that when she eventually gets the money over here, it will buy her more pounds). She would be gambling not just on Brexit being a disaster, but on Brexit being an even bigger disaster than the market has already priced in.

Linton

No one can make sensible suggestions as to what to do with the money until your mum has decided what she wants it for, and in what sort of time frame:

1) World cruise/parties/fine wines etc etc now
2) Steady retirement income starting in 4 years time
3) Inheritance for her children in 40 years time

etc etc

She neednt do the same thing with all her money. If she wants to do several things how is the money to be split?

What sort of amount are we talking about: £1000s, £10000s, £100000s? That could make a difference as to what to do with it.

I dont seen any extreme hurry to get the money transferred as long as it is safe where it is. On the other hand all other things being equal, it is probably better to do it reasonably soon. Currency changes could happen either way but the longer time it is left the less certain the value in £s.

If she is a UK citizen resident in the UK for tax it would be easiest for her to invest from here. That of course does not stop her from investing in companies from around the world using appropriate funds if that's what she wants to do.