was my thoughts from the start but its the old story i needed a second opinion and its appreciated many thanks

As far as I'm aware ?? you can't set up an annuity to pay your children an income after your death so it would be gone{altho' you can to a wife. nb joint annuities pay a lower %age income however)

Definitely better to reduce estate liabilities (ie mortgage) so that kids have greater inheritance.

so if i stick it into an annuity and unfortunately pass away , its lost, its gone and is of no value to my kids whereas if its in my mortgage its in my estate? they then inherit that ?

Normally an annuity is purchased as a result of a pension contract "maturing" either from early retirement or reaching normal pensionable age. .Once an annuity is set up the capital sum is "lost" in return for a guaranteed payment every year til death. If this £100k is a pension pot then there isn't much you can do with it anyway altho' a proportion (25%?) is available as a tax free sum on taking the pension. If its savings then with a £150k mortgage I would be looking to pay off a chunk before interest rates start to climb again!

once your lump sum is deposited in an annuity say £100,000 can you withdraw it at any point and either use it

as cash or deposit it in your mortgage? im worried that if i commit it to an annuity ive effectively lost it in exchange for

a yearly return so could not have any alternatives , i have no spouse but two family both under 23 years of age and i have

a mortgage of over £150,000 outstanding

thanks.

thanks i will check it out

These will help explain.

http://www.guardian.co.uk/money/2001/nov/27/annuities.pensionsfactsheet

http://www.moneypage.com/Investments/Annuities/What_Is_An_Annuity%3F.html

http://www.pensionsadvisoryservice.org.uk/Personal_and_Stakeholder

_Pensions/Annuities/

what is an annuity ? thanks