Inheritance Advice

BibBub2025

Hello - I have just been told that I am going to be gifted £125,000 by a family member as inheritance. I'd like to get an idea of some of the best things I can do with the money at this stage in my life (I'm 33). My wife and I are in the process of potentially planning a move from the UK to Macau in China (where her family live). 

We are also planning to try for a baby in the near future. We don't have a huge amount of money saved (i.e. nowhere near as much as is coming from the inheritance), but are building our savings, and some of this money might well be useful for future planning and possibly in a trust or invested for the future. 

We currently have a flat in the UK that we are planning on renting out once we move - we have a mortgage of £295,000 left to pay on the flat, which is valued at £410,000. We have a 2 year residential mortgage locked in at a 4.5% rate, but we have until the end of January to amend this. We plan to request consent to rent from the bank if the move does go through, and the remortgage to an expat BTL at the end of the term (we are aware of the risks and responsibilities involved with this).

I need to check with the bank to see if there are any early repayment charges at this time, if we wanted to pay any of the mortgage off, but I believe because we are in the process of renewing, these charges would be limited. Any advice on how this money might best be used, would be very helpful!

Emmia

BibBub2025 said:

Hello - I have just been told that I am going to be gifted £125,000 by a family member as inheritance. I'd like to get an idea of some of the best things I can do with the money at this stage in my life (I'm 33). My wife and I are in the process of potentially planning a move from the UK to Macau in China (where her family live). 

We are also planning to try for a baby in the near future. We don't have a huge amount of money saved (i.e. nowhere near as much as is coming from the inheritance), but are building our savings, and some of this money might well be useful for future planning and possibly in a trust or invested for the future. 

We currently have a flat in the UK that we are planning on renting out once we move - we have a mortgage of £295,000 left to pay on the flat, which is valued at £410,000. We have a 2 year residential mortgage locked in at a 4.5% rate, but we have until the end of January to amend this. We plan to request consent to rent from the bank if the move does go through, and the remortgage to an expat BTL at the end of the term (we are aware of the risks and responsibilities involved with this).

I need to check with the bank to see if there are any early repayment charges at this time, if we wanted to pay any of the mortgage off, but I believe because we are in the process of renewing, these charges would be limited. Any advice on how this money might best be used, would be very helpful!

Is your move to China intended to be a permanent one? Or are you intending to return to the UK in a few years/at some point?

If you're no longer in the UK then you'll find you cannot have UK bank accounts (as they require residency) so you'll need to look at options for Expat accounts which a few banks like HSBC offer. 

Mands

If you're no longer in the UK then you'll find you cannot have UK bank accounts (as they require residency) so you'll need to look at options for Expat accounts which a few banks like HSBC offer. 

This is widely shared but is not accurate. 

*Some* financial institutions close the accounts of people who move overseas, but not all. I live overseas, all my financial providers (First Direct, MBNA, Fidelity, NS&I, HSBC) are aware, and have no issue with that.

Whilst HSBC do offer expat accounts they are only available to new customers in a handful of countries. 

Mands

BibBub2025 said:

Hello - I have just been told that I am going to be gifted £125,000 by a family member as inheritance. I'd like to get an idea of some of the best things I can do with the money at this stage in my life (I'm 33). My wife and I are in the process of potentially planning a move from the UK to Macau in China (where her family live). 

We are also planning to try for a baby in the near future. We don't have a huge amount of money saved (i.e. nowhere near as much as is coming from the inheritance), but are building our savings, and some of this money might well be useful for future planning and possibly in a trust or invested for the future. 

We currently have a flat in the UK that we are planning on renting out once we move - we have a mortgage of £295,000 left to pay on the flat, which is valued at £410,000. We have a 2 year residential mortgage locked in at a 4.5% rate, but we have until the end of January to amend this. We plan to request consent to rent from the bank if the move does go through, and the remortgage to an expat BTL at the end of the term (we are aware of the risks and responsibilities involved with this).

I need to check with the bank to see if there are any early repayment charges at this time, if we wanted to pay any of the mortgage off, but I believe because we are in the process of renewing, these charges would be limited. Any advice on how this money might best be used, would be very helpful!

Is this a true inheritance? The money is coming from the estate and you are named in the will? Or, is a family member gifting you 125k in advance of their death? 

The answer impacts the timing but also raises the question of future IHT.