How to invest a large inheritance?

mummyof2gorgeousgirls

My great uncle passed away earlier this year and has left a large inheritance to my Mum, Aunt and Nan. My Mum and Aunt are due 10% of his estate, which is looking to be around £150k and my Nan is due 20%, so around £300k.

This is more money than any of them ever imagined and none of them know what to do. I've advised them all to speak to their bank managers, as the money will be paid to them by bank transfer and I can imagine the banks would need to know that these amounts are on their way.

Would you advise that that they also take independent financial advice, as surely their current banks won't necessarily give them the best deals for the money they are looking to invest.

Any advice would be appreciated.

Bee.

juicyjude

Definately get an IFA with those sort of amounts of funds. Dont go to high st banks/building societies advisors as they are not independent and are only out to sell their own products. Hope you get sorted, good luck

Rainmaker_uk

I would speak to a reputable Independant Financial Advisor - I certainly would not go near the bank for advise. Not unless you want one of those gormless NatWest ad girls patronising you and giving you advice on what's going on in HollyOaks

Mikeyorks

mummyof2gorgeousgirls wrote: »

. I've advised them all to speak to their bank managers, as the money will be paid to them by bank transfer and I can imagine the banks would need to know that these amounts are on their way.

Shouldn't be necessary as that sort of sum should be CHAPSed in with relevant audit trail - presumably from a Solicitor. But I would ensure that if they do decide to tell the Bank - they don't also acquiesce to any advice being offered.

Look to pay off any debts - then consult an IFA regarding any money they wish to invest. They may surprise you and decide to upgrade the house or do a round the world cruise?

mummyof2gorgeousgirls

Thanks for the replies. I will definitely advise them to speak to an IFA. It appears my great uncle was a very financially astute man. He had £1.34million in shares alone. :eek: Not the sort of money my family are used to.

My Mum needs a little persuading that the list of things she wants to spend it on, should be whittled down a lot. My sister has convinced her that a £20k family holiday to Disneyworld, Florida is the way to go, along with giving all 4 grandchildren £250 to spend in Toys 'r' Us. 2 of these children are mine (4 and 10 months) and they just don't need my Mum to spend that on them. I'm not ungrateful, I just don't want my Mum to fritter away her money.

Thanks again,

Bee.

googler

I don't think there's any need to 'let the bank know' about a large deposit coming their way.

Having recently handled my Mum's estate, as executor and sole beneficiary, once the house was sold, a transfer of almost £230k dropped into my account.

Excuse my cynicism, but - Nobody at the bank wondered where it had come from. They didn't care. Your relatives' banks will probably be the same.

mummyof2gorgeousgirls

Mikeyorks wrote: »

Look to pay off any debts - then consult an IFA regarding any money they wish to invest. They may surprise you and decide to upgrade the house or do a round the world cruise?

My Mum is on a small wage. Her inheritance is 12 times her gross annual salary. She lives in a HA flat with my disabled brother and struggles month by month with the money she receives. I just want her to invest well, so she can make her life a little bit easier and not have to scrimp each month.

Bee.

DiggerUK

mummyof2gorgeousgirls,
It will more than likely be a bitter sweet experience. A gain, by a bereavement is like that.
Hope you are coping.
If you haven't a clue about finance, don't worry. It is not rocket science, and the amounts you describe can smooth out a lot of issues. But although most will urge you to see an advisor straight away, you should do so knowing that their knowledge of financial markets is little better than your own.

They do have an image that they are market analysts who are on the edge of the markets moves and comprehend what's what.
Truth is they are sales reps of financial services and products, that's all.
All you should do for now is pay off what debts there are, including mortgage, and find a way to protect the long term value of what's left. There is plenty of advice around, just DYOR, and you will do fine. Sit tight for a while and learn, it really is that simple.

Best of fortune.

Mikeyorks

mummyof2gorgeousgirls wrote: »

I just want her to invest well, so she can make her life a little bit easier and not have to scrimp each month.
.

Makes it easier then. Pay off any immediate debts and then consult an IFA with a view to investing for income (but preserving the capital value against inflation).

jamesd

mummyof2gorgeousgirls, this is really IFA territory, so visit unbiased.co.uk. When invested in a mixture of investments, £150,000 should be able to produce an ongoing income in the £7,000 to £9,000 a year range, depending on the specific investments used.

No harm to ask for review here of whatever options are suggested. Initial obvious thoughts include starting to use the whole annual stocks and shares ISA allowance each year to try to make the ongoing income tax free.

joerugby

mummyof2gorgeousgirls wrote: »

My Mum is on a small wage. Her inheritance is 12 times her gross annual salary. She lives in a HA flat with my disabled brother and struggles month by month with the money she receives. I just want her to invest well, so she can make her life a little bit easier and not have to scrimp each month.

Bee.

If your mum is in receipt of any benefits her situation could be quite complex - suggest she gets some advice asap