Exciting inheritance! How to hold it?

[Lionessadmirer]

My lovely uncle has left me and my two brothers £450k each after inheritance tax (we have just sent off IHT400).

For my brothers this is life changing. And it means I won’t have to support them financially.

My husband and I have a specific long term financial ambition to do with our house. But until the time comes to action that, we don’t need the money. We are both busy working full time.

my uncle self-invested nearly all his money via hsbc and ii. Given what I say above, is the sensible thing to do the same?

lastly, how should isas be used here please?

thank you and please raise a glass to our uncle who lived well and died content.

You need advice from an independent financial advisor.
You can put some into ISAs but only £20K in any tax year and less than that from April unless you are over 65.

After you have spoken to a FA, you should look at investing in stocks and shares with advice from reputable companies like Hargreaves Landsdown/ Fidelity etc.

You'd be looking at growth anywhere from 5 to 10% pa .

What a silly post.
I cannot believe anyone who inherited £450k would not be excited, regardless of the circumstances.
I also cannot believe some of the virtue signallers on MN REALLY think what they write, they do it because it makes them feel superior. In this case. I suspect it comes from a position of envy.

I think you are wrong here.
I have savings outside of ISAs which is taxed at 20% once it totals more than my personal allowance .

Very very wierd....when youre obviously well off and just recieved decent inheritance, why on earth would youvask mumsnet and not just get advice from a professional??

I agree but the advice here is actually to find a FA.

OP is starting from ground zero because she doesn't appreciate that interest on savings is taxed (either at source by HMRC or separately.)

@YetAnotherWannabeWriter It’s only taxed if you take it as income! Our portfolio is set up to reinvest any dividends and our share ISAs don’t pay tax. Thats why with this amount of money you need a decent investment company! Theres not always income tax to pay. You might pay CGT but only if you realise the gain.

No financial advice OP but bloody hell…every thread I look at these days includes comments from people who seem intent on ‘having a go’ at the OP. Do they jump on every thread to post their snide comments and negativity?

You haven’t been disrespectful. Some MN posters can just be arseholes.

The starting point with an FA is that if you aren't paying them a fee then they are being paid out of commission and their advice can't possibly be independent, so don't use them.

https://www.citizensadvice.org.uk/debt-and-money/financial-advice/getting-financial-advice/

News flash – people die. Given the OP is in her 50's you can assume it wasn't a tragic passing.

Agreed.

If you've no experience of investing, you should speak to an independent financial advisor. I, personally, would be prepared to accept a medium to high level of risk if you don't need access to the money for a long time.

I, personally, invest in accumulation tracker ETFs (exchange traded funds). If you don't need an income, they might be better than distribution funds that pay a dividend, because the dividends will be taxed and you may need to pay to reinvest the remaining income. Accumulation funds automatically reinvest all the dividends to give a higher share price.

I invest in LGGG as my main global tracker. It's proportionally invested in the world's largest 1000+ companies. This does tend to make it a bit USA tech heavy, but that is where the growth has come from and, in my opinion, it's likely to come from with AI. The annual fee is 0.1%.

L&G Global Equity UCITS ETF (LGGG.L)

Please watch Rebel Finance School (specifically episodes 6 onwards) which are brilliant if you are new to investing. Or at least ask for guidance from their Facebook group.

They would disagree with everyone on here who is recommending an IFA.

You are still liable for dividend tax in an accumulator fund unless it’s in a tax free wrapper.

Why is it distasteful?

That's at least 3 of you so far who are wrong then 🤣

Guess what? In case you hadn’t noticed… this is an internet forum, and people are allowed to voice their opinions… and they MIGHT differ from yours.

You are welcome.

It’s very distasteful to put up a post such as this.

Maybe upskill and earn more, so that you can invest more. Nobody should be using savings accounts for long term wealth accumulation, either.

I started with nothing and made an initial £1000 investment in BP aged 30. I was disciplined and saved £800 a month on an income of £42k.

I now have a £500k aged 47.

Stop moaning and take control of your life.

Why would someone online be better than an IFA? Do tell.

There is no way you should be recommending a video over a real person.

We have an IFA and they do not invest for us and are not on commission for anything.

They helped us plan IHT, pensions and how to manage/invest a large lump sum. We employ them on a retainer annually, and have a face to face meeting once a year. Worth their weight in gold!

Don't be daft. People are capable of feeling 2 different emotions at the same time.

I echo everyone who says see an independent financial advisor.

You can love and appreciate someone and still feel happiness that they have thought of you and left you a sum of money. Those things can be separated.

FWIW, we were left some money from DH;s aunt. We think of her often and tried to use the money in a way that we knew she would value. She was fiscally conservative so we paid off our mortgage and invested some into a disabled trust for our son. We were exceptionally grateful for the money. It did not mean we valued or loved her any less.

You do sound harsh.

OP doesn't have time on her side as she is late 50s now.

Investing in BP was a no brainer back then and you were lucky the way oil went.

It's far more complicated now and especially when governments keep changing the goal posts and taking more and more in tax.

What a lovely uncle you had. He obviously loved you and your brothers dearly. Enjoy the money. Very happy for you.

If you'd written something like "I'm sorry I find that very distasteful " then I wouldn't have commented because that's your opinion and you were nice about it. But you didn't, you made it a statement of fact and it's a fact I don't agree with so, in turn, I was entitled to make that point.

I'm sorry if that annoyed you.

Can you explain why you find it distasteful to be excited at inheriting £450,000?

I agree. I find it weird that some people object to inheritance passed down through the generations. My parents married in 1958 and scrimped and saved to buy a house. We never had a car or fancy holidays, we had presents for birthday and Christmas. Second hand clothes. The nastiness of some PPs on mumsnet when growth in property value and children inheriting is just off the scale. Most people have the chance to better themselves through education, hard work etc, if they opt not to do that, its not the fault of those who DID better themselves, like my parents, therefore, my siblings and I inherited some money when my parents died
, and very welcome it was too!! 😆😆

Couldn't agree more. Probably one of the worst posts I've read here.