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've been doing something wrong...

A cash Isa with £10k can give you £30 per month interest straight into your current account

Id look at trading 212 both cash and stocks and shares ISA the interest rate on the cash isa has had a bonus for new customers but their normal interest is 3.6% the interest accumulates on their ISA account. But its easy access

also look at ATOM bank, the CEO was part of first direct and the system for opening and using is very easy and secure. They have various bonds with interest over 4% locked in for 3 years - which would be good as its looking like interest rates will lower again in the next few months.

With ATOM bank you can also have monthly interest or keep it in the bond. Don't put more than £115,000 in one banking organisation - so if you used Lloyds for £115,000 don't use Halifax or royal bank of Scotland as they are part of the same group

As an aside I hope when I die the inheritance is enough to make someone excited, I worked for the money and would like their appreciation with obvious respect

Then you put 20k each into ISAs now and a further 12k each next year.

you can still put £20k into an ISA when the rules change in April 2027 - but it will be limited to £12k in a cash ISA and £8k in a stocks and shares iSA

It's not a waste of money if you don't have the interest/time/ability to invest a large amount of cash. I'm sure there's worse things you can do. Two friends of mine are fully qualified accountant - they are extremely risk averse - they have at least £1m in high street savings accounts.
It wouldn't be my choice but you pay your money and take your choices.

How mean spirited. You don't know how ops uncle made his money.
Maybe he had a business that employed people and contributed.
Millions of people won't inherit anything doesn't mean nobody should.
We can't afford holidays but we don't begrude people who can. You must have a sad life.

The 3 year thing only applies if probate is dragging out and the money is still in the original holder's name and account. When the money is transfered to the recipient the ISA closes and the money/investments are transferred outside the ISA wrapper. (There's an exception for spouses, but that's not relevant here.)

OP, you have 3 months to use the current year's ISA and pension allowances. So in your position (which I was a few years ago) I'd start with your bank's private banking service - Schroeders if you're with Lloyd's, as mentioned by a PP, but I expect most big banks have similar. They aren't fully independent and they cost more than DIY, but they will talk you through all the options and get things started off. Although they charge a fee, Schroeders is fairly reasonable and it keeps you out of the hands of predatory investment companies like St James Place that charge much higher fees and have massive exit penalties. I found paying for their initial advice really useful even though I only actually invested a small proportion with them - you get a long meeting to assess your risk appetite and look at your plans and options, and it helps think things through.

You can then spend time educating yourself with Rebel Finance, Money Saving Expert or whatever and transfer to DIY or a fully IFA later once you're more confident and have had time.to research.

An intermediate option would be Fidelity. It's one of the DIY platforms but if you have £250,000 invested with them you have access to a free wealth management advisor. They won't actually invest for you in the way Schroeders does, but give you some support and direction. Their fee is 0.25%, compared with around 1.5%+ for one of the fully managed services.

Key points:

• Whether DIY or managed, look for low fees and no exit fee.
• Cash savings for anything you plan to spend in the next 5 years, investments for longer term.
• Use your full ISA allowance now, and the same again in April, even if it's just sticking it in a cash ISA. You can invest later, you just need to get it into the wrapper to not lose the allowance.
• if it's all in one bank, you have temporary FSCS protection for the whole lump sum, but only for about 6 months. After that you want cash holdings spread out so no more than £85k is with one institution (appplies to the parent bank, even if they have different public-facing brands like Nationwide and Virgin Money, or Lloyds and RBS). The exception is NS&I, which is covered up to £1 million.
• Keep a record of all interest, dividends and transactions - you'll need them for tax purposes.

At a time when many people are struggling financially, I do find your post inappropriate and insensitive. You seem to me to be deriving enjoyment from rubbing people's noses in your "exciting" windfall.
Keep it to yourself and seek advice elsewhere!

Yes, it should be allowed - why would someone not want to give their money to someone they love?

It's posted in the investments section. OP is looking for investment advice. Just hide the thread if it's not for you.

I’m in my 50s and if I inherited £450k I wouldn’t still be busy working full time. I’d be reducing my hours first.

What a bizarre thing to write about a total stranger you can have no possible opinion on. You have no idea how lovely this uncle was. All you know is he had a shit-ton of money when he died!

She doesn't need to tell everyone about her "exciting" inheritance" and ask everyone to "raise a glass" to her deceased uncle. She could have said that she has a large sum to invest. The tenor of her post is what I find objectionable!!

Congrats OP
Very exciting time
Thanks to your lovely uncle 😘

💯

It is technically a waste of money. I’m not saying people shouldn’t make an informed choice to waste their money if they don’t have the confidence to educate themselves. But objectively- looking at the data - it is a waste of money to pay fees to a financial services company.

Whereas you know better....

Their fee is 0.75% which I appreciate you may believe is high. However, my husband and I both work full time and don’t have the experience or time to manage the investments ourselves, and it’s also not really something we would enjoy. We are happy with the course of action for now and excellent work on your growth. It’s fantastic!

No it’s not. If I die after a happy and well lived life, I sincerely hope that whatever I leave behind brings some excitement and joy to the people who receive it.

Oh get a life. And possibly a better paying job so you're not this bitter.

You must have a preferential rate as Unbiased quotes their starting fees at 1..1% with a minimum of £750 per quarter. Thats 3 grand a year!

https://www.unbiased.co.uk/discover/personal-finance/savings-investing/rathbones-uk-investment-management-review-what-are-the-pros-and-cons

It would be awful to be excited about someone's death.

But I can think of a few loved ones who'd have been delighted that someone they loved and wanted to help was excited by the gift they'd left in their will.

OP is hardly heartless and grabbing when she's been financially supporting her brothers.

Get an IFA and don’t spaff it up against the wall, basically. A good IFA will sort you out-can you get any recommendations?

I agree with pp who think this is distasteful. Along with the exclamation mark as if you’re squealing for joy. You could’ve just said you’d been left a large amount of money-obvs I’ll be dead and won’t care but I’d hate to think of my kids asking for inheritance advice causing it Exciting!

Don't put more than £115,000 in one banking organisation

Oops - too late to edit my post bit this is the correct FSCS protection limit. I forgot about the recent increase.

We all die.

It's the people who are linking being excited at a big inheritance with being pleased someone has died who are distasteful!