Best investment vehicle for inheritance

pauln

My parents have been fortunate to inherit around £80k from an elderly aunt which they are looking to invest and I am interested in reader's views on the best investment vehicle. They don't seem to have a clue what they want to spend this money on so they need to have reasonably quick access to it but maybe don't need immediate access for all of it. Bear in mind that they are in their early 70s so (to put it bluntly) haven't got loads of time for the money to accumulate and won't want to take risks.

Is it just a case of finding the savings account paying the highest rate of interest or are there more sophisticated ways of maximising return in this situation.

Many thanks in advance for all posts received.

dunstonh

If they want to call upon the money then there is little you can do nowadays to avoid IHT on it. The old methods of using trusts have eliminated some options. Savings accounts wont eliminate IHT at all.

Will the interest for the 80k impact on their age allowance and/or pension credit entitlement if placed in a savings account?

mike_the_bike_2

Maybe you could make some suggestions..??

A cruise maybe? or some other nice holiday?..Some new carpet for the house. A new driveway

I'm all for parents spending money whilst they are in a position to enjoy it!!

Jonbvn

Tax is the issue! If they pay tax, then Index linked certs look good, and are 99.9% risk free. If they don't pay tax then the best instant access savings account(s), together with the R85 form.

HTH.