Inherited £60k, What Would You Do?

Garnigo_Tarmeister

I recently inherited £60k from an uncle, and have no idea what to do with it. I have no knowledge or history of investing and don't know where to start.

As a bit of background, I am 43, single with no kids and I don't own a property. I am an only child and the house I live in is my dad's (he lives with his partner) so I pay minimal rent in comparison to what I would pay if I was renting privately. Additionally as an only child I am set to inherit the house eventually.

I have thought about potentially using it as a deposit for a house somewhere down the line, but certainly not right now. A friend has recommended using an investment service like AJ Bell, whilst my dad's partner has given me the details of the financial advisor she has used for years.

I know this is a bit of a vague question, and a lot of it depends on what returns I want and how soon (I am in no rush is the answer), but I just wondered what everyone else would do in my situation? 

Any feedback gratefully received!

eskbanker

Paying a token rent ahead of ultimately inheriting the house would suggest that from a purely financial perspective it probably makes little sense to consider buying, but if you are considering that eventually then why not now?

What's your pension situation?

You may find a financial advisor happy to discuss what to do with a five figure sum but many would only be interested at six or more....

tacpot12

Congratulations. It's a nice problem to have.

I would suggest the first issue you need to consider is where your father's partner will live if he dies before them. If his Will allows his partner to remain in the house until they die, you need to consider whether the two of you would be happy to continue to live together. If you think that this is likely to be ok, perhaps you don't need to buy a property, but it might make sense to do so. There is always the chance that you might fall out, or that your father changes his Will, etc. 

You could always rent a new house out, and this would cover some of the mortgage, effectively buying the house for you. If you are going to become a landlord though you need to read up on what it involves. It is certainly not as easy as investing in Stocks and Shares. 

Investing in Stocks and Shares, or saving the money in a savings accounts are the easy options. Investing is a bit harder as you either need to select what to invest in, or select a Financial Adviser you trust to invest it for you. Using an Independent Financial Adviser recommended by someone is one of the better ways to find someone.

if it were me, I would invest it in Stocks and Shares as you seem to have nothing that you need to spend the money on for the next ten years or so. 

You might check your State Pension forecast, and fill up any missing years in your NI Contribution record to secure a better state pension. Youmight also consider whether you could live of this money if you contributed all of your salary to your pension scheme in order to get the most tax releif you could.  

Swipe

Garnigo_Tarmeister said:

Additionally as an only child I am set to inherit the house eventually.

Any feedback gratefully received!

Has your father made a will? He'll need a new one writing if he ever marries his partner and you are to get the house.

GrubbyGirl_2

You're taking it as a certainty that you will be inheriting your fathers house.  If your father ends up marrying his partner he will have to specify in his will that you will get the house.  If they are serious enough to get married could you guarantee that will happen?  If he does what will happen to her?  

If you're looking to invest why not put it down as a deposit on a property that you can then rent out and cover the mortgage costs?  if it all goes as you predict then when your father passes you inherit his house and your will also have an income (aka pension).  If it doesn't work out and you don't inherit the house or only inherit part you have somewhere else to live whihc hopefully will be paid off by then

Garnigo_Tarmeister

Thanks everyone, just to clarify the situation with my dad and his partner, they have been together for almost 20 years. He is 82, she is 78, they are not married and won't be getting married. She also owns a number of properties and an Old People's Home. The house is left to me in my dad's will.

I have three different pensions, two from previous jobs and one from my current job.

I have considered buying a property to rent out as well, but am thought I would wait to see what happens with the property market.

Thanks everyone so far for taking the time to reply!

Albermarle

Similar recent thread with some useful links.

eskbanker

Albermarle said:

Similar recent thread with some useful links.

Is at....?

Sea_Shell

What does your dad's will say about his residual estate, should the *specified house (being left to you) have been sold, for any reason, in the meantime?


*It it mentioned by address?  

Garnigo_Tarmeister

Sea_Shell said:

What does your dad's will say about his residual estate, should the *specified house (being left to you) have been sold, for any reason, in the meantime?


*It it mentioned by address?  

I have no idea actually! But I can't think of any reason for which the house might be sold in the meantime.

Albermarle

eskbanker said:

Albermarle said:

Similar recent thread with some useful links.

Is at....?

Ooops

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