Unexpected inheritance - views ?

Mrs_Z

This happened to me few years ago, and not dissimilar amount.  My first thought was to feed it all into my SIPP or ISAs over time, but I realised that in some ways, it was really 'boring' and I had visions of the person who left me the money, rolling their eyes thinking if I that was the best I could come up with. 
So far, I've spent about 20% of the money - we did a wonderful long haul weekend trip (all expenses paid) with a friend who knew the deceased as well as I did in their memory.  Fabulous time we had - totally extravagant and totally worth it and something that I'd never normally do (too MSE)!
I also paid privately for an operation which was on border line medical/cosmetic - I was wondering if the deceased would 'approve'.... when back at home in recovery, the clinic sent me a boquet of flowers from the same florist that my deceased friend used - so I took that as a sign of approval! Then this year, I treated myself to an expensive piece of jewellery - a real one off piece - which was eye wateringly expensive and I financed partly from my own savings, partly from the legacy from my friend and also from my (late) mother. But I wear this piece of jewellery every day and couldn't be happier, again, totally worth it.
It's a funny things with inheritance - it has this image of 'free money' and how you can splash it out and go mad with it, but I've found it very bitter sweet - especially at the beginning. A significant amount of money which I hadn't 'earned', which only came to me at the cost of losing a dear friend, then the same with a parent. It's a difficult one to balance. I think it should be enjoyed (meaningfully( but not frittered a way!  Like you, we have no kids to pass it on.
And yes, I did also pay one year's allowance to my SIPP.... 

Roger175

You say you have no kids or grandchildren. Who were you planning to leave any remaining money to in your own wills? If you are not careful, you will just be leaving a larger inheritance yourselves to somebody who is not necessarily that close. You say you are living comfortably, clearly you will be more comfortable now, but if you really don't need the money to plug a hole or drag you out of an uncomfortable retirement, then surely better to use the money to treat yourselves to some additional/upgraded holidays etc. Don't fall into the trap of just adding the money to your existing savings and then end up leaving it to someone else.

We are expecting some inheritances at some point (both our Mums are in their Autumn years), but we aren't reliant on it in the slightest, having made our own provision, so we will also have a decision to make at some time. At the moment we are thinking we will most likely help our kids out, maybe a few family holidays, newer cars or even help reduce mortgages etc, all to be decided once we know the sums involved.

barnstar2077

Roger175 said:

You say you have no kids or grandchildren. Who were you planning to leave any remaining money to in your own wills? If you are not careful, you will just be leaving a larger inheritance yourselves to somebody who is not necessarily that close. You say you are living comfortably, clearly you will be more comfortable now, but if you really don't need the money to plug a hole or drag you out of an uncomfortable retirement, then surely better to use the money to treat yourselves to some additional/upgraded holidays etc. Don't fall into the trap of just adding the money to your existing savings and then end up leaving it to someone else.

We are expecting some inheritances at some point (both our Mums are in their Autumn years), but we aren't reliant on it in the slightest, having made our own provision, so we will also have a decision to make at some time. At the moment we are thinking we will most likely help our kids out, maybe a few family holidays, newer cars or even help reduce mortgages etc, all to be decided once we know the sums involved.

I agree, upgraded holidays is a nice way to spend such money.  You get a great holiday (and the opportunity to gift friends and family a fantastic holiday too), and the money goes back into the economy, helping to keep people from the hotels, restaurants, cruise ships etc in employment.

Even something as apparently wasteful as a mega yacht, costing millions, employs hundreds of people, paying their mortgages and keeping them fed etc.

33scott

Treat yourselves, this windfall is over and above what you saved and planned for.
Take the Queen Mary 2 to New York and fly back first class, or something like that.
You are in de-accumulation phase so don't feel guilty about spending it, I dare say the person who left it you would have wanted you to have fun and create some fantastic memories.

Albermarle

33scott said:

Treat yourselves, this windfall is over and above what you saved and planned for.
Take the Queen Mary 2 to New York and fly back first class, or something like that.
You are in de-accumulation phase so don't feel guilty about spending it, I dare say the person who left it you would have wanted you to have fun and create some fantastic memories.

Although I am not disagreeing with your general sentiment, but some people would actively dislike being in First Class, or equivalent, and would probably be choking on the £25 glasses of champagne etc, even if they could afford it.

QrizB

Albermarle said:

... but some people would actively dislike being in First Class, or equivalent ...

Dislike is a strong word but yeah, that would be me.

On one transatlantic trip a few years ago BA made some sort of erroe with seat assignments which meant they'd already given my seat to someone else. Business was also full so they bumped me all the way up to First.

It was a really weird experience - very different to the other cabins - and, while I'm glad to have given it a go for free, I'm not sure I'd seek it out again intentionally!

Moonwolf

Albermarle said:

33scott said:

Treat yourselves, this windfall is over and above what you saved and planned for.
Take the Queen Mary 2 to New York and fly back first class, or something like that.
You are in de-accumulation phase so don't feel guilty about spending it, I dare say the person who left it you would have wanted you to have fun and create some fantastic memories.

Although I am not disagreeing with your general sentiment, but some people would actively dislike being in First Class, or equivalent, and would probably be choking on the £25 glasses of champagne etc, even if they could afford it.

That is potentially true of any of the suggestions.

in the end isn’t the recommendation - spend it on something that will make you happy.

OK, it can be very difficult to switch to a spending mindset and turn off that voice that says this is a waste of money. 

One method is to have a real reason for the upgrade.

I do like first class in trains because of the leg room, room to work and free coffee and I can imagine flying to Australia without the seat in front reclined so far back that your knees are crushed and you can’t watch the film must be nice.

The other is just to buy something that you really want and just wasn’t practical or affordable in the past: Art, a first edition, a classic car, a neolithic sculpture or a charity gift.

Cobbler_tone

Moonwolf said:

Albermarle said:

33scott said:

Treat yourselves, this windfall is over and above what you saved and planned for.
Take the Queen Mary 2 to New York and fly back first class, or something like that.
You are in de-accumulation phase so don't feel guilty about spending it, I dare say the person who left it you would have wanted you to have fun and create some fantastic memories.

Although I am not disagreeing with your general sentiment, but some people would actively dislike being in First Class, or equivalent, and would probably be choking on the £25 glasses of champagne etc, even if they could afford it.

That is potentially true of any of the suggestions.

in the end isn’t the recommendation - spend it on something that will make you happy.

OK, it can be very difficult to switch to a spending mindset and turn off that voice that says this is a waste of money. 

One method is to have a real reason for the upgrade.

I do like first class in trains because of the leg room, room to work and free coffee and I can imagine flying to Australia without the seat in front reclined so far back that your knees are crushed and you can’t watch the film must be nice.

The other is just to buy something that you really want and just wasn’t practical or affordable in the past: Art, a first edition, a classic car, a neolithic sculpture or a charity gift.

100%.
Some people could never bring themselves to part with £10k for a sketch. Some couldn't pay £25 for a drink (have you never been to a nice place in London?!), pay £40k for a car, or even £4 for a coffee. Some people will probably die pretty wealthy but we all have a different relationship with money. It is probably true that those who grow up with nothing are more careful with it. It's not either/or though and my mindset has totally changed as I get older and my plans are set.
I guess it is a mindset but money doesn't bring happiness, far from it. For most it alleviates worries. Certainly with people who I know that are relatively wealthy, who are most definitely not the happiest people I know! 

diveunderthebonnet

Cobbler_tone said:

Moonwolf said:

Albermarle said:

33scott said:

Treat yourselves, this windfall is over and above what you saved and planned for.
Take the Queen Mary 2 to New York and fly back first class, or something like that.
You are in de-accumulation phase so don't feel guilty about spending it, I dare say the person who left it you would have wanted you to have fun and create some fantastic memories.

Although I am not disagreeing with your general sentiment, but some people would actively dislike being in First Class, or equivalent, and would probably be choking on the £25 glasses of champagne etc, even if they could afford it.

That is potentially true of any of the suggestions.

in the end isn’t the recommendation - spend it on something that will make you happy.

OK, it can be very difficult to switch to a spending mindset and turn off that voice that says this is a waste of money. 

One method is to have a real reason for the upgrade.

I do like first class in trains because of the leg room, room to work and free coffee and I can imagine flying to Australia without the seat in front reclined so far back that your knees are crushed and you can’t watch the film must be nice.

The other is just to buy something that you really want and just wasn’t practical or affordable in the past: Art, a first edition, a classic car, a neolithic sculpture or a charity gift.

100%.
Some people could never bring themselves to part with £10k for a sketch. Some couldn't pay £25 for a drink (have you never been to a nice place in London?!), pay £40k for a car, or even £4 for a coffee. Some people will probably die pretty wealthy but we all have a different relationship with money. It is probably true that those who grow up with nothing are more careful with it. It's not either/or though and my mindset has totally changed as I get older and my plans are set.
I guess it is a mindset but money doesn't bring happiness, far from it. For most it alleviates worries. Certainly with people who I know that are relatively wealthy, who are most definitely not the happiest people I know! 

True but i would rather be un-happy in a rolls Royce rather than a bicycle 

Cobbler_tone

diveunderthebonnet said:

Cobbler_tone said:

Moonwolf said:

Albermarle said:

33scott said:

Treat yourselves, this windfall is over and above what you saved and planned for.
Take the Queen Mary 2 to New York and fly back first class, or something like that.
You are in de-accumulation phase so don't feel guilty about spending it, I dare say the person who left it you would have wanted you to have fun and create some fantastic memories.

Although I am not disagreeing with your general sentiment, but some people would actively dislike being in First Class, or equivalent, and would probably be choking on the £25 glasses of champagne etc, even if they could afford it.

That is potentially true of any of the suggestions.

in the end isn’t the recommendation - spend it on something that will make you happy.

OK, it can be very difficult to switch to a spending mindset and turn off that voice that says this is a waste of money. 

One method is to have a real reason for the upgrade.

I do like first class in trains because of the leg room, room to work and free coffee and I can imagine flying to Australia without the seat in front reclined so far back that your knees are crushed and you can’t watch the film must be nice.

The other is just to buy something that you really want and just wasn’t practical or affordable in the past: Art, a first edition, a classic car, a neolithic sculpture or a charity gift.

100%.
Some people could never bring themselves to part with £10k for a sketch. Some couldn't pay £25 for a drink (have you never been to a nice place in London?!), pay £40k for a car, or even £4 for a coffee. Some people will probably die pretty wealthy but we all have a different relationship with money. It is probably true that those who grow up with nothing are more careful with it. It's not either/or though and my mindset has totally changed as I get older and my plans are set.
I guess it is a mindset but money doesn't bring happiness, far from it. For most it alleviates worries. Certainly with people who I know that are relatively wealthy, who are most definitely not the happiest people I know! 

True but i would rather be un-happy in a rolls Royce rather than a bicycle 

How about happy with a bicycle?