500k + inheritance at young age

Shodan6920

Hi all,

New to posting on this site, however I am in need of advice. Tragically, I lost my parents not long ago very suddenly and now I am left with a windfall on top of my grief.

I am an only child, 22. I am now left with no parents (no particular guidance), no siblings or children, and a large sum of money (100k+), a house, and several pieces of land. I am clued up on the various options available such as maxing out my isa and savings accounts etc however I would greatly appreciate people's advice on my predicament.

I currently work full time and I am debt free. I imagine many people would be envious of the assets I have gained but they have come at a very high price . Any advice would be greatly appreciated.

Thank you.

MumOf2

Poor you. What a dreadful way to come into money like this. And such a huge responsibility for you at such a young age.


Presumably there will be inheritance tax to pay and this should be the first call on any cash.


Condolences on your loss.


x

PeacefulWaters

Has the estate gone through probate yet?

If so, I'd suggest you need an IFA. https://www.unbiased.co.uk.

Presumably there will be inheritance tax to pay and this should be the first call on any cash

If the value of the estate is £500k and the parents were married, unlikely.

CLAPTON

probate can only be obtained after IHT is accounted for

xylophone

Another 20 something with loads of cash, excuse my cynicism

Why so cynical? I can think of at least one person known to me who would have been in such a position had both parents died suddenly - family home, insurance, investments etc?

Shodan6920

The figures are minus IHT and probate has been obtained.

Coldiron, I don't particularly value your opinion or appreciate your comment, and believe me if I could have it any other way, then I would.

Thank you for the comments so far, would like to know what others would do in my situation? I'm considering not touching it at all, as I don't really need it for anything. Thoughts on this?

Mickygg

How dreadful. Sorry to hear your loss. I can imagine your head must be in a spin.Things to consider:
Inheritance tax and probate.
£85k max in any banking group due to financial compensation scheme protection to this limit if they go bust.
I would at your age go all for low risk until you get clued up. Sell house, keep in cash. Keep land if possible until later years when you have a clearer idea what to do with this..


My overall advice is to keep in cash, within £85k limits until you are more clued up with what to do, either using IFA and more wisdom and experience with age. ISAs yes, which you can put in £15k this tax year.


Good luck, don't blow it all.

El_Torro

Shodan6920 wrote: »

Hi all,

New to posting on this site, however I am in need of advice. Tragically, I lost my parents not long ago very suddenly and now I am left with a windfall on top of my grief.

I am an only child, 22. I am now left with no parents (no particular guidance), no siblings or children, and a large sum of money (100k+), a house, and several pieces of land. I am clued up on the various options available such as maxing out my isa and savings accounts etc however I would greatly appreciate people's advice on my predicament.

I currently work full time and I am debt free. I imagine many people would be envious of the assets I have gained but they have come at a very high price . Any advice would be greatly appreciated.

Thank you.

I'm sorry for your loss.

I would say that your main priority is to secure a place to live. From your post it looks like your parents' house is worth £400k. You could live there or if you don't need such a big place you could downsize. If you'd be happy living in a place worth £150k then do that and use the rest of the money elsewhere.

Other than that I would say that you should invest a large chunk of the remaining money. In ISA's, pension and other savings accounts. In your position I would try to secure a comfortable early retirement / reduced future hours rather than spending it all now but it's up to you. You're going to be mortgage free anyway so you're (financially speaking) in a better position than most.

With the amount of money you have it may be wise to speak to a financial adviser before allocating your investments as well.

Archi_Bald

It's all very well hearing opinions from people who basically don't know anything about you and your circumstances, your financial needs and plans and your attitude to risk. You should look for an IFA (ask friends/colleagues for a recommendation, or use unbiased.com) who can sit with you and create a tailored plan that you are happy with.

lr1277

Condolences on your loss.


If you don't know anyone from who can give you advice, another route you can try is subscribing to Which. (£7.75/month). They have a Which Local section where people recommend 'tradesmen' locally.
They say they include financial advisers in the list of people recommended.
I have not used the service to find an IFA, but I did use it to find a plumber. (The plumber I called was on holiday at the time, but did give a lot of useful advice).


HTH.

Spirit_2

I am sorry for the loss you have had.

There is a young woman is in a similar situation. In her case the family home etc was sold as she was a minor when she lost her parents.

I am not aware of how she accesses financial advice, what I am aware of is that she has preserved as much age appropriate/life style as she can. Her friends, peers, education and continuity in other aspects of life are valuable.

Hope this helps in some way.