Cash inheritance - with a difference - what to do?
Discussion
Hi all,
I'm hoping to draw on the experience and collective wisdom of the group.
My mum is downsizing and will disperse the proceeds of selling the family home among three siblings, plus enough for her to live on for her dotage.
As it's a large house this translates into about £450k per sibling and £450k for her living allowance.
I have been appointed banker by my brothers, meaning I will be in charge of how things are arranged for her to draw down her living allowance from the £450k, plus I need to invest my £450k. I'm a higher rate taxpayer.
I own my flat outright, no mortgage. My mum owns a flat outright, into which she will move following the sale of her house.
My first thought is that if possible I would want to invest £900k in a way that would provide income, net of tax, in a tax-efficient way. Equally, I realise returns are at an all-time low, and I don't want to take risks with my mum's living allowance.
What should I be thinking about? Thanks a lot for your reactions!
I'm hoping to draw on the experience and collective wisdom of the group.
My mum is downsizing and will disperse the proceeds of selling the family home among three siblings, plus enough for her to live on for her dotage.
As it's a large house this translates into about £450k per sibling and £450k for her living allowance.
I have been appointed banker by my brothers, meaning I will be in charge of how things are arranged for her to draw down her living allowance from the £450k, plus I need to invest my £450k. I'm a higher rate taxpayer.
I own my flat outright, no mortgage. My mum owns a flat outright, into which she will move following the sale of her house.
My first thought is that if possible I would want to invest £900k in a way that would provide income, net of tax, in a tax-efficient way. Equally, I realise returns are at an all-time low, and I don't want to take risks with my mum's living allowance.
What should I be thinking about? Thanks a lot for your reactions!
Thanks all for setting out your thoughts - much to consider.
I will try to set up conversations with IFAs but I have very little experience with them except one whose advice I couldn't really understand, so frankly I'm a little bit scared I'll be a sitting duck for poor advice!
A legal structure that minimises tax would be great - provided it does in fact do that and doesn't get me pursued by HMRC. That would really finish mum off!
I will try to set up conversations with IFAs but I have very little experience with them except one whose advice I couldn't really understand, so frankly I'm a little bit scared I'll be a sitting duck for poor advice!
A legal structure that minimises tax would be great - provided it does in fact do that and doesn't get me pursued by HMRC. That would really finish mum off!
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