what sort of advice do I need? re how to deal with an inheritance...

[bitclueless]

I am about to come into some money and need advice on how to deal with it. I want to put some of it as a lump sum into my pension and need advice about how to do that tax-efficiently. The rest I don't really know what to do with, but might involve putting it into trust for dcs or giving to charity. i have no idea what the tax implications are of that.
I don't know what sort of person I need to advise me or how to find them. Do I need a tax accountant? Or a financial adviser? Or a solicitor?
I'm not really clued up about this kind of thing really - don't have an accountant or a family solicitor, have always just muddled through doing my own tax returns etc.
Can anyone advise me?

An independent financial advisor is the best person to help, ie not one from your bank who will only advise on their own products.

I received an inheritance recently but it's all got to go to ex-h to buy him out of family home .

I agree that an IPA is the best way to go if you want professional help. But they will charge a fee which you could avoid by doing some homework yourself, you dont need to be some maths genius to amnage your money well. In fact there is no guarantee that an IFA will actually give you the best advice- there is always an element of risk in financial planning. You should think about your attitude to risk before you make any decisions. Eg the bigger potential returns tend to come from the products with the biggest risk of ending up with less than you started (or potentially nothing).

While you are deciding, dont keep more then £50k in any one bank so that you are covered by the government's financial compensation scheme.

Your current age, number and age of dependents, marital status, retirement plans, mortgage/home ownership status, benefits claimed now or potentially in the future will determine what is best for you.

Personally I'd put it in property but that depends on exact circs.

I agree that IFAs don't necessarily give the best advice - I've seen a few in my time and think I have made better decisions for myself.
But I have definitely decided about hte pension and need help to sort out the tax implications, maximum contributions etc - an IFA wouldn't do that would they? Who would?

The 50K is per banking group isnt' it? (eg 50K for Lloyds and HBOS between them)

any other thoughts - not sure an IFA is the right person to advise on pension tax arrangements, is it? Do i need an accountant? How do you find a good one?

a lot of accountants have an IFA arm - we do.
Putting in to trust - really depends on how much you are talking about as to whether it is worthwhile - and having sorted out your own financial future as well.
Could also consider pension contributions for the dc's - can only be £3,600pa, but if you could commit to that until they were 18 it gives them a healthy pension pot in the future with all the years of growth until they retire.

Any decent IFA will not charge you a fee. They will make a commission on any product they sell to you.

amothersplace - HBOS and Lloyds guarantee £50k each (at present), even though they've merged.

It all depends on how much money you're coming into. Sub £20k and you can probably manage it yourself. Over £50k and an IFA might be advisable. My tips would be....

• If your debts/mortgage are attracting higher interest rates than savings, pay those off first.
• Make the most of any tax-free/tax-efficient savings opportunities next e.g. Cash ISAs, Unit Trust ISAs, Child Trust Funds, Private Pensions. Online comparison sites can show you the best rates.
• Consider long-term bonds (3 year or 5 year) if you don't need all the money immediately. National Savings have some for example and, again, online sites can show you the best rates
• Keep 6 months expenses in an easy-access savings account in case of emergency (big ticket repair, redundancy etc)
• (As said above) If you have more than £50k to invest, spread this across more than one financial organisation.

Don't know amount exactly as it is complicated and not sure what will happen with inheritance tax etc. Enough for me to feel somewhat overwhelmed by anyway and certainly >50k. Mortgage is more or less paid, so next priority is pension. And dcs to get similar amount in trust which I feel very uncomfortable about tbh.

New deposit guarantee limit to be £85,000 More up to date info I think

I don't have a 'my solicitor' , that's the point - how do I find one that has skills in the right area? That's what I mean about being clueless- I've never been the kind of person who has a solicitor or accountant and don't know where to start !

Not an executor thank goodness- and already have v little mortgage.

If you're thinking of setting up a trust then I would recommend talking to an accountant. Most accountants give you the first meeting free so set up a few meetings and talk things through with them. You can then hopefully find someone who is knowledgeable and a good fit for you personally.

My experience with solicitors and tax/investment advice is varied. Some know very well what they're talking about whereas others seem to have no idea about the tax implications of what they're proposing. I would go by recommendations from friends who have had to deal with a similar thing in the past.

Solicitors & accountants are not authorised to give advice on things like pensions. You do need to see an IFA. Most will have an initial meeting for free. If you go to www.unbiased.co.uk, you can put in your postcode & find someone local to you.

They will generally offer you a choice on whether to pay a fee upfront or pay commission. They will certainly explain the options during the first meeting.

HTH, let me know if you have any other questions.

If you are coming into such a significant amount of money you should get/update your will. have you thought about what will happen to this money if you die? You will need a solicitor for that.